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TABLE OF CONTENTS

I. EXECUTIVE SUMMARY………………………………………………………………………………..1
II. STUDY BACKGROUND………………………………………………………………………………..2
A. Brief History of the Company………………………………………………………………3
B. Mission and Vision………………………………………………………………………………4
C. Product/Service Offerings……………………………………………………………………4
III. MACROENVIRONMENTAL ANALYSIS………………………………………………………..8
A. Economic…………………………………………………………………………………………….9
B. Politicolegal…………………………………………………………………………………………9
C. Sociocultural………………………………………………………………………………….…….9
D. Demographic……………………………………………………………………………………….9
E. Technological………………………………………………………………………………………10
IV. OPPORTUNITIES AND THREATS…………………………………………………………….….10
V. MICROENVIRONMENTAL ANALYSIS……………………………………………………….…11
A. The Company…………………………………………………………………………………...…11
B. Suppliers…………………………………………………………………………………………..…12
C. Marketing Intermediaries.………………………………………………………………..…13
D. Customers………………………………………………………………………………………..…13
E. Competition…………………………………………………………………………………………13
F. Publics…………………………………………………………………………………………………16
VI. STRENGTHS AND WEAKNESSES……………………………………………………………….16
VII. THE MARKET……………………………………………………………………………………….….17
A. Market Size…………………………………………………………………………………….….17
B. Market Needs………………………………………………………………………………….…18
C. Market Trends……………………………………………………………………………………19
VIII. MARKETING OBJECTIVES………………………………………………………………………19
IX. MARKETING STRATEGIES………………………………………………………………………..19
A. Product/Service Strategy……………………………………………………………………20

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 a. Target Market………………………………………………………………………………..21
b. Brand Positioning……………………………………………………………………….…21
B. Pricing Strategy…………………………………………………………………………………...22
C. Distribution Strategy……………………………………………………………………………23
D. Advertising and Promotional Strategy…………………………………………………24
X. TACTICAL IMPLEMENTATION…………………………………………………………………….27
XI. MARKETING BUDGET……………………………………………………………………………….28
XII. FEEDBACK AND CONTROL……………………………………………………………………...30
XIII. FINANCIAL PROJECTIONS………………………………………………………………………32

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I. EXECUTIVE SUMMARY

Fila is a subsidiary of Sport Brands International (SBI) which controls directly or

indirectly around 20 international companies which create, develop, produce and
distribute sports apparel and footwear under the Fila and Ciesse brands. With more
than thirty years' hands-on experience, Fila is one of the world's leading sport brands,
especially in running, tennis, fitness, cross-training and other sports in specific markets
It strengths are innovative use of mixing different components of cloth into making a
different sportswear was very successful, successful brand image due its motivational
designs, good name for its brand logo as its full of colors and easily identifiable

Its major weaknesses are tremendous competition from sports apparel brand
globally meaning smaller market share, Lack of products in the women segment as
compared to mens, their distribution channels are not as established as the global
sports apparel leaders. From the study some findings about major threats of Fila is low
switching cost. Having these weaknesses and threats it also has some major
opportunities to hold and expand its business with the help of its strength these
opportunities are it will be the first brand to inculcate a casual culture into a brand
experience and the lines of expanding into casual clothing and sports equipment.

Fila has over 100 stores all over the world. The brand has different market
segmentation based on their features and value propositions. It takes into account all
quality measures taken at all levels and involving all company employees to ensure
TQM. Fila is a worldwide well-known brand by everybody. The brand has strong
branding strategy with unique logo, design, ideology and message. Marketing budgeting
and investment was highest in 2012.In 2015 the investment was 12.07 billion USD and
the turnover was 14.8%.As most of the Fila’s target consumers are from 18-35 Years
including athletes, fashion conscious people.
For Fila to become more successful are: focus e-commerce for Omni-channel efficiency,
increase focus on digital marketing and social media. Fila should focus to create

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separate brands to enter into the premium sports products, Eco friendly product
packaging, diversify its business to other segments.

II. STUDY BACKGROUND

A. Brief History of the Company

Fila Incorporation is an Italian-South Korean sporting goods company. It was

founded in 1911 in Italy, and is one of the world's largest sportswear manufacturing
companies. Since a takeover in 2007 by Fila Korea, Fila is now owned and operated
from South Korea. Headed by chairman and CEO Yoon-Soo Yoon, Fila has offices
in 11 countries worldwide, including Philippines, Korea, USA, Australia and many more.
(Source: Wikipedia)
When the Fila brothers first opened shop in 1911 in Biella, a small town in the
foothills of northern Italy, they had no idea how far their legacy would travel. Originally
in the business of creating quality textiles for local townspeople, the brothers sought to
produce fabrics that combined luxury, art and utility, drawing inspiration from their
homeland to create product as exquisitely textured and evocative as the Italian
landscape: the austerity of the Alps, the fluidity of the hills and the boldness of the
Mediterranean coast.
The story of Fila's transformation into a leading global designer of high-end
sportswear has been one of continual evolution driven by a philosophy of innovation
that lies at the heart of our most successful designs. In 1923, the brothers officially
established the expanding family-run textile business as a high-quality knitwear
manufacturing company, entering into a limited partnership named Maglficio Biellese.
Through the years, the business grew beyond the borders of Biella to become a
well-known quality knitwear producer for Italy. In 1942, the company merged with the
Fratelli Fila company, and by 1972 the company had sales of over one billion lire and a
total workforce of more than 250 people. Wishing to further expand the company,
Giansevero Fila hired Enrico Frachey as the managing director of the firm in 1968.

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 Frachey shared Fila's vision and it was his creativity and managerial resourcefulness
that ultimately transformed Fila into a global sportswear brand.
A century after its humble beginnings, Fila has become synonymous with
performance and sophistication. Worn not only by internationally recognized athletes,
but the fashion conscious, Fila uses premium fabrics designed to radiate the
sophistication of Italian craftsmanship, while allowing maximum flexibility and
performance. Our legacy of style earns us admiration to this day. Whether you perform
for the challenge of adventure, the rigor of competition, or simply the pleasure and
well-being of an active life, Fila will help take you wherever you want to go, because we
understand that the beauty of sport is that of a life in motion.
So have the courage to defy expectations, to challenge the limits of both yourself
and the world around you. Be bold and provocative. Remain vintage, but never
conventional, and show the world that it is possible to radiate sophistication and style
without sacrificing performance. Above all, commit to standing out, not blending in. On
behalf of all of us at Fila, join us in celebrating a legacy that can only be described as
legendary. Here's to our history of looking forward, and a future of making history.
(Fila Company, 2007)

B. Mission and Vision

Mission Statement
A mission statement is a short statement of an organization's purpose, identifying
the goal of its operations: what kind of product or service it provides, its primary
customers or market, and its geographical region of operation

MISSION STATEMENT OF FILA

To penetrate the market by creating new brands and appearing in high-society
events.

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 Vision Statement
A vision statement is a declaration of an organization's objectives, intended to
guide its internal decision-making. A vision statement is not limited to business
organizations and may also be used by non-profit or governmental entities.

VISION STATEMENT OF FILA

To be an authentic sports brand with superior lifestyle appeal.

C. Product/Service Offerings
1. Shoes
a. Running Shoes and Sneakers (Top 10)
ITEMS SRP (Php)
FILA Distruptor II - Men's Shoes

Php 4,100

FiILA Men's Basketball Shoes - Black

Php 4,999

Women's Memory Deluxe Running Shoes

Php 4,766

Women's FS1HTA1075X_EPK Pale Pink Shoes

Php 5,390

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 FILA Tennis Low Top Sneakers

Php 4,664

Men's Tempo Running Shoes - Black/White/Metallic

Php 4,769

Casual Lace Up Sneakers

Php 3,588

Logo Sock Sneakers

Php 5,166

Women's Royalty Sneakers

Php 5,577

b. Bags (Top 5)
ITEMS SRP (Php)
FILA Mini Backpack

Php 2,704

FILA Sila Sam Backpack

Php 4,327

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 Rolling Backpack

Php 14, 848

Nexus 5 Pocket School Laptop Backpack

Php 8,226

Women's Sam Backpack

Php 7,455

c. Clothes and Accessories (Top 12)

ITEMS SRP (Php)
Logo Long Sleeve Sweatshirt

Php 2,727

Embroided Logo Cap

Php 2,153

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FILA Printed Logo Shirt

Php 2,511

Logo Print Sweat Pants

Php 2,727

Pinstripe Shirt Jacket

Php 3,014

Embroided Logo Hoodie

Php 6,458

Side Stripe Track Pants

Php 4,879

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 Logo Patch Sweatshirt

Php 4,664

Men's Ankle Socks

Php 3,077

FILA Short dress

Php 3,949

Embroided Logo Swim Shorts

Php 2,511

FILA Bermudas

Php 3,408

III. MACROENVIRONMENT ANALYSIS

A. Economic

According to the Director of Heritage for FILA North America, Louis Colon III: The
"Heritage" of FILA category has grown exponentially and has become a key business
driver for the brand, with sales of the segment up 146 percent this year. Over the past

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four years, its heritage business has doubled its growth every year. In 2018, we are
making the brand a fashion brand and marketing to a younger consumer, applying new
techniques. The conversation you will see around the brand will be a lot different. We
want to tell a fashion story with a sport twist. Everything you see from us has a sport
twist.

B. Politicolegal

 Risk of diverse tariffs and non-tariffs, law and regulations between countries
 Adverse Trade Protection in global business affects sales & service
 New Tax or tariff imposed by local governments
 Political instability effect business
 Risk of legal violation in terms of human rights, environmental issues
 Tougher business rules
 Trade Union causing inefficiency

C. Sociocultural

 Consumers are becoming brand conscious

 Change in buying habits in youth
 Increase market share of female customers
 Demand for sports products

D. Demographic

 Ranging from 18 years old and above

 Including athletes, fashion conscious people both men and women

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 For the social class, people under low to upper class must also part of the
demographic whereabouts

E. Technological

 Technological advancement increasing sales

 Change in technology making current technology obsolete
 Upgrade to new technology requiring money
 Innovative and technically superior products

IV. OPPORTUNITIES AND THREATS

External opportunities provide an organization with a means to improve its

performance and competitive advantage in a market environment. Some opportunities
can be foreseen, such as being able to expand a franchise into a new city, while some
may fall into your lap, such as another country opening up its market to foreign
business.

External threats are anything from your organization's outside environment that
can adversely affect its performance or achievement of its goals. Ironically, stronger
organizations can be exposed to a greater level of threats than weaker organizations,
because success breeds envy and competition to take what your organization has
achieved.

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FILA OPPORTUNITIES AND THREATS ANALYSIS

OPPORTUNITIES THREATS

 Fila can be the first brand to inculcate  The new changing trends could
a casual culture into a brand replace the existing product range
experience. quickly.
 Switching cost is very low in this
 The lines of expanding into casual Industry, so regular innovation and
clothing and sports equipment. adapting to changes in sports industry
is quint-essential.

 More advertising can boost the brand  High competition for Fila means
image and presence of the brand. limited market share growth.
 The industry is dominated by a few big
 Opening more Fila stores can help
players, hence difficult to overcome
attract the youth more.
customer perception can be an issue.

V. MACROENVIRONMENTAL ANALYSIS

A. The Company

Since footwear trends are moving in the brand favor, FILA has a new opportunity to
connect with the younger generation who may not be familiar with the brands past but
are attracted to its products. So how was FILA able to change the narrative?

One of the hottest trends in footwear is the ugly shoe movement. FILA helped
pioneer the style, but it's now being brought to the forefront through high fashion
brands like Balenciaga and Fendi. Kim Kardashian teased the latest Adidas Yeezy
sneaker, which looks similar to the FILA Disruptor 2, on social media. The look has

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quickly become one of the most in-demand styles, and has in turn made the brand an
on-trend fashion staple.

When you see brands in high, high fashion selling the ugly shoe, the bulky shoe, the
company have had this in its brand DNA since 1993.

The bulky shoe trend will continue to influence footwear design over the next 18
months. It will go extreme as it is, and you will see more aggressive bottoms. Relying on
past strategies may not be enough for footwear companies to keep up with today
fast-changing consumer, FILA is not simply resting on playing into trends and is
positioning its comeback to be something greater than just a fad.

Now people are looking for more value, for more authenticity, but it needs to be
on-trend. The big ships cannot turn that fast. FILA have an advantage in that the
company are smaller and nimble and have built an infrastructure to be able to turn
things around really fast. I think you will see more businesses adapt to the business
model. Some of the competitors need to reposition themselves as a little smaller, which
is harder because they are a bigger ship.

B. Suppliers

FILA Philippines shoes are carefully and meticulously designed locally by a team of
creative minds working in the company. Having locally designed products enables the
designers to create products that our customers want and are looking for.

The main supplier of FILA Philippines was FILA Italy, wherein it is also the origin of
FILA. Manufacturers deliver the products to the main Company in Italy, and supplies
various kinds of products all around the world including Philippines.

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C. Marketing Intermediaries

Since 2004, FILA has been one of the most aggressive brands in terms of business
development. It has expanded market reach through 48 stand alone boutiques and has
positioned itself in 45 SM Department Stores, Robinsons Department Stores, Landmark,
specialty sports houses such as Tobys, Olympic Village, Royal Sporting House, and
Sports Central, as well as Ever Grand Central and Ever Commonwealth. FILA Philippines
have also joined the loop of stores for Metro Gaisano, Gaisano Capital, Gaisano Grand
and NCCC, all of which are considered leaders and pioneers in their respective
provincial territories.

D. Customers

Fila has the traditional marketing mix where the primary focus is on Products in the
4 C’s model, the primary focus is on the customer. They are always trying to full fill
customer satisfaction level. They are generally ready to offer customizable products
and because they have a general set of target customers, this principle is only
applicable for smaller market segments and not for mass markets. Fila’s product age
group is 4-65 aged people. On the other hand they always focus middle and high
income level people. As already they always prefer and maintain their quality.

E. Competition

Nike, Adidas-Salomon, Reebok, and Fila are leading in athletic foot apparel. Each
has a different niche strategy in the market that they excel in. Nike has been the leader
in athletic footwear and apparel for the last couple of decades, once holding 43% of the
US market (Anonymous, 2000). Adidas is the second leading maker of sporting goods
worldwide and currently holds 17% of the US market (Anonymous, 2000). Both Fila and
Reebok always seem to be following a couple of steps behind. Fila appeals to the
younger urban consumers with their hip hop styles, which is a huge plus for them

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because that is the style for teenagers today. These competitors are all fairly new at
the e-commerce side of business, but are taking a few different routes in being
successful. Using a content analysis methodology, a grid is developed that compares
their mission statements, web site strategies, and web site "stickiness".

Nike was started in 1964 by Philip Knight and has grown to become the leader in
athletic footwear and apparel. Nike has been one of the pioneers in using overseas
factories to make products designed and sold in the US. Unfortunately, the product
line was extended too far in the early 1990s. By mid 1990s, sales had seen a drastic
decline. In the past couple of years, Philip Knight has restructured his company by firing
1900 employees, cutting some product lines, and creating a new organizational
structure with many Strategic Businesses Units (SBUs). The past couple of quarters
show the restructuring is starting to pay off. Fiscal second-quarter earnings released in
mid-December 1999 beat analysts' estimates, as net income totaled $107.5 million
compared to the same quarter a year ago when earning were $68.9 million. Revenues
jumped 8% to $2.1 billion, fueled by a 13 % leap in European revenues (22 % in constant
dollars) and a rebound in Japanese sales, from a sharp decline a year earlier (Wrighton
& Bleakley, 2000).

Reebok, like Nike, has seen some hard times in the past couple of years, but
management responded differently than Nike's. For decades, Reebok has been one of
the top three athletic footwear and apparel companies in the US. They have four very
distinctive and complimentary brands: Reebok, Rockport, Greg Norman Collection, and
Polo Ralph Lauren Footwear. Paul Fireman has again become the President and CEO of
Reebok. In the past three years, they have seen a steady increase in operating cash
flow. Ending 1999, Reebok generated an excess of $280 million from cash operations,
which is an increase of $130 million from the previous year
(www.reebok.com). Reebok's sales decreased by 29.9% from $362.2 million in 1998 to
$253.8 millions in 1999 (www.reebok.com). Reebok has dropped all apparel contracts

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with professional team from a number of big markets including the San Francisco
49ers. Reebok has withdrawn from all major intercollegiate athletics, as well. They
decided not to renew any contracts even when a number of universities wanted to stay
with them. Only a few Division I-AA or Division II schools are still under contract with
Reebok.

Adidas, headquartered in Germany, is regaining its position as one of the leaders

in athletic footwear, after being close to bankruptcy in 1993. Adidas currently has
about 17% of the market share in the US (Anonymous, 2000). When Adidas merged
with Salomon (a French manufacturer of skis and golf clubs) in 1997 for $1.4 billion,
many outsiders saw it as a bad strategic move. In the past, Adidas has had global
dominance, but in this decade Nike has taken over that position. Similar to Nike, Adidas
is restructuring by streamlining the product range. Adidas-Salomon designs, develops,
and markets a broad range of athletic and active lifestyle footwear, apparel, and
hardware products under the Adidas, Salomon, Taylor Made, Mavic, and Bonfire brand
names. Adidas-Salomon products are sold in over 160 countries in the world
(www.SportsLine.com).

Having a strong marketing mix (4 P's) is extremely important for an organization

to be successful. Nike.com had the top ranking when comparing the marketing mix
variables. For example, their advertisements on television and those on their web site,
to their strategic alliance partnership with UPS to deliver their packages, were all
strategically designed. Adidas.com was second because it just starting selling items on
their web site, but it is promoting its web site with contests involving their endorsed
athletes and the New York Yankees. Fila.com ranks third with its alliance with Ryder
Logistics and its commercials on television and their web site. Reebok.com is last with
their globalization strategy of selling products and providing their products over the
Internet to many countries.

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F. Publics

Fila is planning to create regional centers of excellence around the world in product
design, development, sourcing and marketing. The Regional operating headquarters will
be based in Sparks (MD, USA), Milan (Italy) and Seoul (Korea).The new strategy includes
the rationalization of key markets coverage around the world, the improvement of the
supply chain to reduce the lead time to market and the streamlining of corporate
structures.

VI. STRENGTHS AND WEAKNESESS

Strengths describe what an organization excels at and separates it from the

competition: a strong brand, loyal customer base, a strong balance sheet, unique
technology and so on. For example, a hedge fund may have developed a proprietary
trading strategy that returns market-beating results. It must then decide how to use
those results to attract new investors.

Weaknesses stop an organization from performing at its optimum level. They are
areas where the business needs to improve to remain competitive:
higher-than-industry-average turnover, high levels of debt, an inadequate supply chain
or lack of capital.

FILA STRENGTHS AND WEAKNESSES ANALYSIS

STRENGTHS WEAKNESSES

 The brand has very popular sports  Fila has tremendous competition from
brand ambassadors which has sports apparel brand globally meaning

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 promoted their brand very well. smaller market share

 The innovative use of mixing different  Lack of products in the women

components of cloth into segment as compared to mens.

 making a different sportswear was  Distribution channels not as

very successful established as the global sports
apparel leaders
 Fila has a very successful brand image
due its motivational designs

 They have a very good name for its

brand logo as its full of colors and
easily identifiable

 The brand has over 100 stores all over

the world

VII. The Market

A. Market Size

Too much growth has hinged on Fila's endorsement strategy. When Howe Burch
joined the company four years ago, it had just embarked on a series of focus groups
with 12- to 18-year-olds -- a key market. "They told us a lot of stuff that was fairly
sobering," said Burch, senior vice president of advertising and communications.

Analysts call that phenomenal growth, in a market so dominated by Nike (with

about 44 percent) that everybody else basically swaps what's left. "Fila has been seen
as an up-and-coming brand," said Thomas B. Doyle, vice president of research at the

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National Sporting Goods Association in Mount Prospect, Ill., which represents about
3,000 retailers, including Foot Locker.

Fila will open a 385,000-square-foot warehouse and distribution facility in Brandon

Woods business park by September with the help of $1.25 million in economic
development funds from the state of Maryland, a loan that becomes a grant if the
company creates 125 new jobs over three years.

B. Market Needs

People are also increasingly realizing the importance of using appropriate type of
shoes for sports activities in order to prevent muscle injuries, leg injuries, knee pain, hip
pain, and back pain. As a result, the demand for athletic shoes is expected to register a
sharp rise over the coming years.

Running shoes include shoes required for training, advanced running, road running,
trail running, track running, and racing. The running shoe segment dominated the
market in 2017, which can be attributed to daily usage of running shoes and availability
of these shoes in a wide range of prices ranging from affordable athletic shoes to highly
luxurious athletic shoes.

Now Fila is again trying to remake itself. It has little choice: Hill's endorsements are
scoring fewer points with teens. Retail orders for the first half of this year are weaker
than expected. The company's stock has tumbled.

In the assessment of both analysts and its own officials, Fila must broaden its line
and expand further into the women's market if it is to continue to grow market share.
And it must transform its dominant image from one of fashion to one of function.

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C. Market Trends

Fila is an organization built around a strong culture and employer brand. With so
many different product categories in different markets, it would be easy for each one to
have their own distinct culture and marketing, with little overlap in-between. And yet,
that isn’t the case, as every product categories of Fila is constructed around one key
tenet: purpose. The marketing of Fila is highly purpose driven rather than target driven.
And the HR of Fila plays a big part of it. Fila has a really simple philosophy: when you
bring people and brand together under the banner of purpose, ordinary people can
achieve some extraordinary things. That means making jobs less about the what and
the how – what the person will be doing, how much money they’ll make – and instead
about the why, as in why they are doing what they do each do.

VIII. MARKETING OBJECTIVES

 To establish retail outlets nationwide by the end of September 2017.

 To implement new innovation of designs of the product offerings by December

2017.

 To attain the position of the brand with the level of 60% by January 2018.

IX. MARKETING STRATEGIES

Sponsorship – Sponsorship advertising is a type of advertising where a company

pays to be associated with a specific event. In fact, sponsorship advertising is very
prevalent with charitable events. Besides from charitable events, companies
may sponsor local sporting teams, sports tournaments, fairs, and other community
events. Fila pays many sports athletes to promote and sell their product. This is one of

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the most effective marketing strategies to use because promoting products via
respective and authority public figures motivate fans to mimic their idols, which
dramatically increases sales.

Innovation – A marketing innovation is the implementation of a new marketing

method involving significant changes in product design or packaging, product
placement, product promotion or pricing. Innovation is the core of Fila’s marketing
strategy because, in order to be the leading sports brand, Fila has to deliver innovative
products that instantly catches the consumer’s attention.

Selling Benefits, not the Product – Features Advantages Benefits Selling (FABS)
Sometimes, while selling a product, a salesperson tries to bind almost every feature of
that product to an advantage or a benefit, which in turn are deemed as desirable by the
customer. Fila never intends to sell their stuff via commercials, because they always
concentrate on the benefits they bring, or how can it help you improve.

A. Product/Service Strategy

Fila is committed long term to re-launch the brand and sustain a durable and
profitable growth; a relevant example of recent investment is the multi-year agreement
with the Italian Winter Sports Federation (FISI).

Moving forward, Fila will create regional centers of excellence around the world in
product design, development, sourcing and marketing. The Regional operating
headquarters will be based in Sparks (MD, USA), Milan (Italy) and Seoul (Korea).

The new strategy includes the rationalization of key markets coverage around the
world, the improvement of the supply chain to reduce the lead time to market and the
streamlining of corporate structures.

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1. Target Market

The target market of FILA was ranging from 18 years old and above,
including athletes, fashion conscious people both men and women. The
company started its age ranging from 18 years old people since consumers at
this age may have stable job already. The target market should also be capable
enough and have a stable income to afford the product offerings of the
company. For the social class, people under low to upper class must also part
of the target market.

2. Brand Positioning

A brand is a name, term, sign, symbol or design, or a combination of them,

intended to identify the goods or services of one seller or group of sellers

and to differentiate them from those of competitors.

Fila is the leading Italian brand in in the sportswear sector. Created at the
start of the 20th century, Fila has become the go-to label for sports
professionals all over the world, offering a high degree of comfort and quality.

The underwear label known as Maybe was transformed into Fila, a

leading Italian fashion house for sports and technical wear. The iconic red 'F'
logo soon became famous in the world of sports. Fila began making special
clothing for tennis players and later expanded its range to cover all kinds of
sport, from basketball to jogging.

As a leading Italian sportswear company, Fila dresses many famous names.

Tennis champions Björn Borg and Guillermo Vilas were responsible for bringing
the label to world-wide attention. Their new tennis outfits differed radically
from the classical whites and the Fila style was soon adopted by sportsmen the

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 world over. The label also started being worn by non-sports people as hip,
stylish streetwear.

B. Pricing Strategy

Fila Company follows:

Value Pricing Strategy. Their aim is to provide high quality sportswear at affordable
price. In this way they want to provide branded and stylish product to low budget
customers. Globally their average price of shoes ranges from Php 2,200-Php 3,300. They
offer respectively about 23% and 55% lower price than their competitors Adidas and
Puma.

Promotional Pricing. Promotional pricing is the sales promotion technique which

involves reducing the price of a product or services in short term to attract more
customers & increase the sales volume. FILA Company will also focus on the part which
it can provide promotional pricing as of the given time. For example:

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 C. Distribution Strategy

Fila is planning to create regional centers of excellence around the world in product
design, development, sourcing and marketing. The Regional operating headquarters will
be based in Sparks (MD, USA), Milan (Italy) and Seoul (Korea).The new strategy includes
the rationalization of key markets coverage around the world, the improvement of the
supply chain to reduce the lead time to market and the streamlining of corporate
structures.

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 D. Advertising and Promotional Strategy

Fila brand has been associated with major sporting events through sponsorship and
has gained wide visibility through this strategy. Some of the major events include major
tennis events like BNP Paribas Open in Indian Wells, California, Sony Open in Miami,
Florida and the Hall of Fame Tennis Championships in Newport, Rhode Island, the
Porsche Tennis Grand Prix and the BMW Open in Germany. Fila had brand ambassadors
like Bjorn Borg, Kim Clijsters and recently Virendra Sehwag endorsing its products. Fila
associates itself with being athlete oriented and therefore has a loyal customer base
with its association in different sports. It has also used online platform along with print
media and visual promotions to popularize the brand with its trendy and fashion based
products. However in comparison with its competitors brands Fila has used minimal
advertisement of its offerings. This has reduced the market share in the segment with
respect to its competition. This completes the marketing mix of Fila.

ACTION PLAN (4P’s):

PRODUCT PRICE

 Fila products in its marketing mix are Value Pricing Strategy. Their aim is to
categorized into training, accessories, provide high quality sportswear at
heritage and lifestyle each catering to affordable price. In this way they want to
the needs of consumers. provide branded and stylish product to
low budget customers.
 Initially Fila ventured into making

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 clothes for sports for all age groups. Promotional Pricing. Is the sales
promotion technique which involves
 The other major range of products reducing the price of a product or services
include the sports shoes used for in short term to attract more customers &
different sports and activities. increase the sales volume.

 With Fila brand being associated with

tennis there are wide range of
products catering tennis including

shoes, duffle, wristband and socks.

 Includes clothing, shoes, sports

apparel and accessories.

PLACE PROMOTION

 Fila has established its presence in  A 30-second commercial on television

eleven countries through its offices. and radio. (GMA, ABS-CBN, TV5 and
Fila products are generally sold AM Radio Stations; DZMB 90.7,
through sports stores selling different DZMM AM 630))
brands and its exclusive stores at
major cities across different countries.  Billboard with a size of 30x70 inches
along edsa, makati, pasay and various
 The presence of subsidiaries, express ways near metro manila.
distributors and licensees play a major
role in distribution of Fila products  Facebook, Twitter, and Instagram
worldwide. This is done through more Account-------(www.filaph.com;

25
 than 8000 retail stores located across @FILAPhilippines; FILAph)
different countries.
 Kathryn Bernardo, Nadine Lustre, Liza
 Also the products are manufactured Soberano, Daniel Padilla, James Reid
through subcontracting process and and Enrique Gil as the endorsers here
such centres are generally located in in Philippines.
the Far East countries.

 FILA has been one of the most

aggressive brands in terms of business
development. It has expanded market
reach through 48 stand alone
boutiques and has positioned itself in
45 SM Department Stores, Robinsons
Department Stores, Landmark,
specialty sports houses such as Tobys,
Olympic Village, Royal Sporting House,
and Sports Central, as well as Ever
Grand Central and Ever
Commonwealth. FILA Philippines have
also joined the loop of stores for
Metro Gaisano, Gaisano Capital,
Gaisano Grand and NCCC, all of which
are considered leaders and pioneers
in their respective provincial
territories.

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X. TACTICAL IMPLEMENTATION

TACTICS OPERATING DETAILS TIME TABLE

 Establishing retail To succeed in making more

September 2017
stores in almost all retail outlets, and to
branches of SM stores broaden the marketing
nationwide. capability of the company,
and to take advantage of
widening market
nationwide.

 Will train an executive In order to persuade

October 2017
personnel and employees. consumers and perform
the customer service well,
intensive training must be
utilized.

 Will add promotional

Generating and planning
whereabouts regarding October 2017
would be assessed and
the product offerings
board meeting should be
like intensive
implemented.

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 advertising every year.

 Innovating the status Acquiring and tolerating

of every product new ideas and to provide December 2017

through making new more choices for the

designs. customers.

XI. MARKETING BUDGET

MARKETING BUDGET FOR 2018

Advertising expenses, which include the following:

Television:

 30-Second Commercial (Php 103, 000 for every 1 minute commercial offered by
GMA, ABS-CBN and TV5 all in all)

 Morning and Evening

 Good for 3 months

 From Monday to Friday

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Php 103, 000 x 5 = Php 515, 000

Php 515, 000 x 12 (Beacuse it’s for 3 months) = Php 6, 180, 000

Radio:

 10-Second Commercial (Php 20, 000 for every 20-second commercial offered by
DZMB 90.7 and DZMM AM 630 AM radio stations all in all)

 Morning and at Noon

 Good for 4 months

 From Monday to Friday

Php 20, 000 x 5 = Php 100, 000

Php 100, 000 x 16 (Because it’s for 4 months) = Php 1, 600, 000

Billboard:

Provided by Steel Art Billboards

Good for 2 whole months (Php 60, 000)

Steel Art Billboards offers a promo which will the company can only pay Php 60, 000 for
two months instead of Php 68, 000 Php 60, 000

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Expenses for Endorsers:

 All of the endorsers will be paid equally since they are all from the same agency
(ABS-CBN)

 Php 25, 000 per photo shoot will be given to the endorsers (KathNiel, JaDine and
LizQuen) since it was the negotiated salary by the both parties. (A one day photo
shoot only for the billboard and commercial)

Php 25, 000 x 6 = Php 150, 000

Point-of-Purchase Materials: Php 560, 000

Sales Promotions: Php 1, 115, 000

TOTAL: Php 9, 665, 000

XII. FEEDBACK AND CONTROL

A management system that regularly examines the process it is in charge of in

order to make changes that will improve its output efficiency. Many business
operations that include modern manufacturing facilities have implemented feedback
control systems to monitor and fine tune the production process.

Action Plan: Establishing retail stores in almost all branches of SM stores nationwide.

Time Table: September 2017

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 By the end of August 2017, the company must finally ensured the possibility of
establishing retail outlets throughout various branches of SM stores nationwide. SM
Store is the number 1 spot wherein the company can distribute loads of their product
offerings since the establishment has many branches in the country. Aside from other
malls and bigger stores in the Philippines, the company must utilize a great plan in
order to build many retail stores. SM Store is very popular among consumers, so it is
one of the best spot. This plan must be conducted already before the end of October
2017. The executives are in charged whether establishing retail stores in SM Stores are
highly possible.

Action Plan: Will train an executive personnel and employees.

Time Table: October 2017

By the end of September 2017, training should be done already, particularly on

September 29, 2017 to assess the information of the applying employees as early as
possible. The training will start on September 10, 2018. By September 30, the
employees must be informed about their hiring status and job positions. By the end of
the month, all of the vacant positions must be filled.

Action Plan: Will add promotional whereabouts regarding the product offerings like
intensive advertising every year.

Time Table: October 2017

Fila proudly incorporate themselves with the popular European sports and fancy
style (Sponsorships, n.d.). They are one of the most respected brand in tennis world.
They involve themselves into this sports by extending their support beyond any event
or occasion. Their goal is to build long term relationship with the famous athletes and

31
show tremendous love for the game. They have sponsored many sports events and
signed up prominent athletes and celebrity in different regions by investing huge
money. By the end of October 2017, the company will ensure their relationship with
famous athletes and artists, not only in europe but also in Philippines.

Action Plan: Innovating the status of every product through making new designs.

Time Table: December 2017

In December, Fila will open a design and product development center along Makati
and Cebu, to focus on performance and to woo designers from nearby Nike and Adidas
Philippines. Created baseball and football shoes should appear in stores in time for
Christmas, with a major launch next year. Meanwhile, in January, another development
office will be opened in central Visayas and Southern Luzon, this one to design shoes for
hiking, trail running and climbing. The company also plans to introduce soccer shoes
this summer.

XIII. FINANCIAL PRJECTIONS

In its simplest form, a financial projection is a forecast of future revenues and

expenses. Typically, the projection will account for internal or historical data and will
include a prediction of external market factors. In general, you will need to develop
both short- and mid-term financial projections.

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Financial records of Fila as of 2017:

Revenue Php 196,383,000

Add: Other Expected Sales Php 862,190

Gross Sales Php 197, 245, 190

Less: Expenses (Php 9, 665, 000)

Net Income before tax: Php 187, 580, 190 x 30 % (Tax)

Net Income after tax: Php 131, 306, 133

Despite low price setting, they maintain high quality of their product. According to
the top tens site, consumer find product affordable, stylish and great fitting. This does
give us an idea that Fila does not compromise quality trying to cut down the cost which
is an identical aspect of value pricing.

“Our digital future is about enabling better

productivity and decision making to enjoy a
better quality of life.”
- Yacine Baroudi

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Sources of Data:

 https://www.encyclopedia.com/marketing/encyclopedias-almanacs-transcripts-a
nd-maps/fila-usa

 https://www.mbaskool.com/marketing-mix/products/17255-fila.html

 https://www.academia.edu/23570068/Marketing_Analysis_of_Fila

 http://www.fila.com.ph/about-fila-philippines/

 https://www.washingtonpost.com/archive/business/1997/04/07/fila-gains-foot
hold-in-athletic-shoe-market/1944f989-72e0-461c-ad8e-4872456ced05/?noredire
ct=on&utm_term=.c468f86502f8

 https://www.businesswire.com/news/home/20030919005228/en/Fila-Announc
es-Strategic-Reorganization

 https://www.dmnews.com/channel-marketing/email/news/13059725/fila-select
s-89-degrees-to-develop-email-marketing-plan

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