A STRATEGIC MARKETING MANAGEMENT PAPER

ON
HDI ADVENTURES, INC.

To be presented by:
Patrick Alvin Racusa
Company Profile
Company Profile
• HDI Adventures is a subsidiary of HDI Admix
Incorporated that considered as one of the
leading Out-of-Home Advertising Company in the
Philippines. It provides various out-of-home
executions just for their clients to choose from
because according to them, they want to be a
‘one-stop-shop’ OOH company.
• HDI Adventures, is the subsidiary that handles all
the Billboards and MRT banners of HDI.
Revenue
Products and Services
Products and Services
Products and Services
Products and Services
External Audit
External Audit
Porter’s Five Forces
 Threat of new Entrants
The threat of the new entrants in the advertising industry is
relatively low because of the following factors:
– Advertising companies exerts effort in building up
customer relationship among their clients that is why they
tend to stick with them.
– The cost of producing new spaces for the advertisements
is expensive and it is a long process to get a clearance in
prime locations especially now that the MMDA is regulating
the billboards in EDSA and other national roads.
– Companies choose well-established advertising agencies
and have a wide network of past clients
External Audit
Porter’s Five Forces
 Bargaining Power of the Consumers
The bargaining power of the consumers for the advertising
industry is High because of the following reasons:
– Business who usually advertise are large companies,
because of that they can demand concession with the ad
agencies.
– Identity of the clients can increase the brand image of the
ad agency
External Audit
Porter’s Five Forces
 Bargaining Power of the Suppliers
The bargaining power of the Suppliers in the advertising
industry is High because of the following reasons:
– There is a limited amount of ad spaces and the advertising
agencies can decide who will get the slot.
– In relation to that, they can demand for a higher price
when a peak season will come.
– Premium advertising spaces are not enough to supply the
demand
External Audit
 Porter’s Five Forces
Potential for Substitutes
The Potential substitute for the industry is Medium because
of the following reasons:
– There are potential substitute but it will not directly suffice
the product.
– The evolution of advertising from traditional to digital offers
more channel
– Digital Advertising or online advertising is preferred by
some companies because it is much cheaper than out-of-
home advertising.
External Audit
Porter’s Five Forces
 Intensity of Competition
The intensity of competition in the advertising industry is High
because of the following reasons:
– Every execution that will be released by the company, their
name will be at stake.
– There is a limited amount of high-profile clients that can
boost their image.
– The ad spending in the spending in the Philippines is high
and because of that there will be some number of
competitors who will try to steal clients.
 CPM Table
UN CA AD HDI
Critical Success
Weight Rating Score Rating Score Rating Score Rating Score
Factor
Brand Reputation
0.3 4 1.2 4 1.2 3 0.9 3 0.9
Range of Products
0.05 3 0.15 4 0.2 3 0.15 3 0.15
Innovation in
0.04 2 0.08 4 0.16 3 0.12 3 0.12
products and
services
Customer loyalty
0.1 3 0.3 2 0.2 2 0.2 3 .3
Customer Service
0.1 3 0.3 3 0.3 3 0.3 4 .4
Successful product
0.04 2 0.08 3 0.12 2 0.08 4 0.16
promotions
Superior marketing
0.1 4 0.4 2 0.2 2 0.2 2 .2
capabilities
Superior advertising
0.2 3 0.6 3 0.6 2 0.4 3 0.6
capabilities
Innovation in
0.03 2 0.06 4 0.12 3 0.06 3 0.09
products and
services
Strong patent
0.04 2 0.08 4 0.16 2 0.08 3 0.12
portfolio
TOTAL
1.0 3.25 3.26 2.49 3.04

Competitive Profile Matrix

 External Factor Evaluation Matrix

Key External Factors Weight Rating Weighted

Score

External Factor Evaluation Matrix

Opportunities

1. There is an increase an 4.5% increase on ad 0.15 3 0.45

revenue in the Asia-Pacific
2. Filipinos has a huge trust on Word-of-mouth 0.06 4 0.24

3. Filipinos still trust traditional advertising (Print, 0.1 3 0.3

Television and Radio)

4. Filipino Millennials has an average of 60% trust 0.04 2 0.08

ratings on billboards
5. Light Rail Transport (LRT) is open for partnering 0.13 3 0.39
with advertising agencies

Threats
1. Digital Ad spending was predicted to have an 0.12 3 0.36
average of 17.25% growth from 2015-2020
2. Filipinos spent an average of 8 hours and 59 0.05 2 0.1
minutes on their phones
3. MMDA regulates the use of billboard in 0.13 4 0.52
Metromanila
4. The rise of LED billboards in the Philippines 0.07 2 0.14
5. Philippines geographical location attracts more 0.15 4 0.6
typhoon
Total 1.0 3.8
Internal Audit
Internal Audit

Financial Ratios
 Internal Factor Evaluation Matrix
Key Internal Factors Weight Rating Weighted

Internal Factor Evaluation Matrix

Score
Strengths
1. The company has a good client profile 0.09 4 0.36
2. Employees in the company are presentable and has 0.05 3 0.15
good people skills
3. They are one of the major account owners in the MRT 0.14 3 0.42

4. HDI is one of the Top 5 out-of-home advertising 0.18 4 0.72

company in the Philippines
5. The processing time in the company is above average 0.05 3 0.15

6. The HR Department is very active in terms of developing 0.07 3 0.21

the employees of the company
Weaknesses
1. Not all of the ad spaces are located in strategic locations 0.15 2 0.3

2. Limited amount of human resource who works at the 0.07 2 0.14

support of the Sales and Marketing Department

3. Incompetent employees 0.04 1 0.04

4. The website of HDI does not clearly showcase their 0.08 1 0.08
products
5. Focusing too much on certain products and leaving the 0.03 1 0.03
other products behind
6. The cost of producing materials is high 0.05 1 0.05

Total 1.0 2.65

Strategy Formulation
Strategy Formulation
Strategies SPACE BCG IE GRAND TOTAL

Forward Integration - 3

Backward Integration - 3

Horizontal Integration - 3

Market Penetration 4

Market Development 4
Product Development 4

Related Diversification - 3

Unrelated Diversification - 3

Retrenchment - - - - 0

Divestiture - - - - 0

Liquidation - - - - 0

TOTAL 27

Summary of Strategy Matching Tools

Strategy Formulation

Strategy Total Attractiveness Score

Market Penetration 5.44
Market Development 5.09

Product Development 5.35

Result of the QSPM

Recommendations
Recommendations:
HDI Admix Incorporated Proposed Vision Statement
Vision Statement
• A company with an • By 2020, HDI Admix will be
a company that promotes
environment of equal an environment of equal
opportunity for people to opportunity for people to
grow and excel in grow and excel in
providing excellent providing excellent
customer service that
customer service that ensures its sustainability
ensures its sustainability driven by love and care for
driven by love and care for the community.
the community.
Recommendations:
Parameter Yes/No Why
Does it clearly answer the Yes It answers what it wants to become in
question: What do we want to the future, and that is to be a company
become? with an environment of equal
opportunity for people to grow and
excel.
Is it concise enough yet Yes It is concise in such a way that people
inspirational? can easily understand it.
Is it aspirational? No The statement lacks on motivational
drive on achieving it.
Does it give clear indication as No The vision statement of HDI Admix
to when it should be does not state when they want to
attained? achieve it.
Recommendations:
HDI Admix Incorporated
Mission Statement
• To be the country’s
leading OOH Company which
creates continuously
expanding advertisings
avenues for its clients,
provides countless
opportunities for its people
to develop and maximize
their personal and
professional potentials, and
strive to serve the
community with a heart that
promotes its core values: Live
Learn Love.
Recommendations:
Parameter Yes/No If yes, Which part of the Statement?
Customer Yes Continuously expanding advertisings avenues for its
clients

Products and Services Yes Advertising Avenues

Markets Yes To be the country’s leading OOH Company

Technology Yes Continuously expanding

Concern for survival Yes Provides countless opportunities for its people to
develop and maximize their personal and
professional potentials

Philosophy Yes Promoting sustainable development, and

environmental protection.

Self-Concept Yes To be the country’s leading OOH Company

Concern for Employees Yes Countless opportunities for its people to develop
and maximize their personal and professional
potentials

Concern for Nation Building Yes To serve the community with a heart
Objectives:
• New/Current Customer
– Expand sales to the existing clients
– Increase customer retention with current clients
– Introduce new out-of-home platform to the
current market
• Market
– Develop and Implement a promotional plan for
the current products and services offered to
further increase awareness about the company
Objectives:
• Financial Objectives
- Increase the Return on Sales by 45% at the
end of 2018
- Increase the net sales revenue by 15% in the
span of one year
Business and Organizational Strategies:

 Market Penetration
• Marketing Campaign
• Bundles

 Product Development
• Website Integration
• Introducing New Product
• Dial 1HDI-OOH (1434-664)
Business and Organizational Strategies:

 Market Development
• Road Show

 Other Strategies:
• Develop the leadership competencies of the employees to
increase productivity
• Continuously train employees in order for them to be
knowledgeable and cope up with the movement of the
industry
• Monthly briefing of the products and services of HDI to its
employees, especially to the sales representatives of the
company.
• Develop a reward system or recognition for the employees of
the company other than the account managers
Departmental Action Plans:
 Sales and Marketing Department

# Key Activities Target Completion

1 Research on the current trends of the industry 4th Quarter of 2017

2 Plan how will be the marketing campaign would be implemented 4th Quarter of 2017

3 Craft a marketing plan for the company 4th Quarter of 2017

4 Do a briefing for the campaign from the top management to the 1st Quarter of 2018
employees

5 Start the Promotion of the marketing campaign 1st Quarter of 2018

Marketing Campaign Development (S&M Department)

Departmental Action Plans:
 Sales and Marketing Department

# Key Activities Target Completion

1 Do a Competitive Pricing Comparison (CPC) among the 4th Week of November

competitors in the industry.

2 Plan for the type of Bundle that the company will offer to the 1st Week of December
clients

3 Meeting with the Creatives Department 2nd Week of December

4 Finalize the Promos and Bundles 3rd Week of December

5 Implement the bundles January 2018

Bundle and Promos (S&M Department)

Departmental Action Plans:
 Sales and Marketing Department

# Key Activities Target Completion

1 Do a Competitive Pricing Comparison (CPC) among the 4th Week of November

competitors in the industry.

2 Plan for the type of Bundle that the company will offer to the 1st Week of December
clients

3 Meeting with the Creatives Department 2nd Week of December

4 Finalize the Promos and Bundles 3rd Week of December

5 Implement the bundles January 2018

Website Integration (S&M Department)

Departmental Action Plans:
 Sales and Marketing Department

# Key Activities Target Completion

1 Plan for the overall look of the website 4th Quarter of 2017

2 Hand-over all the contents to the Creatives Team for editing 4th Quarter of 2017
and branding

3 Publishing the website 1st Quarter of 2018

4 Spreading the news to the clients about the new website 1st Quarter of 2018

Road Show (S&M Department)

Departmental Action Plans:
 Sales and Marketing Department

# Key Activities Target Completion

1 Create the content for the Road show 1st Week of December

2 Edit all the contents needed for the Road Show 2nd Week of December

New Product (OBD Department)

Departmental Action Plans:
 Operations and Business Development
Department

# Key Activities Target Completion

1 Research on new products that can potentially be an ad space for 1st Week of December
the company

2 Smoothen the relationship on new found partners 2nd Week of December

3 Apply for permits 1st Week of February

4 Develop the site 2nd Week of February

New Hotline Number (OBD Department)

Departmental Action Plans:
 Operations and Business Development
Department

# Key Activities Target Completion

1 Identify the new number that is fit for the company 1st Week of December

2 Apply for the new hotline in the telephone communication 2nd Week of December
company

3 Implement in the company 1st Week of January

Marketing Campaign (Creatives Department)

Departmental Action Plans:
 Creatives Department

# Key Activities Target Completion

1 Meeting with Sales and Marketing Department 4th Week of November

2 Edit all the content that will be used in the campaign 4th Week of December

3 Check if it is align with the brand manual of HDI 1st Week of January

Marketing Campaign (Creatives Department)

Departmental Action Plans:
 Creatives Department

# Key Activities Target Completion

1 Plan on how to present the bundle to the stakeholders 2nd Week of October

2 Edit all the pubmats that will be used 4th Week of December

3 Check if it is align with the brand manual of HDI 1st Week of January

4 Implement the pubmats along with the Sales and January 2018
Marketing Department

Bundle and Promos (Creatives Department)

Departmental Action Plans:
 Creatives Department

# Key Activities Target Completion

1 Plan the overlook of the Website 4th Week of November

2 Edit the content in the website 4th Week of December

3 Hand Over the edited materials to the IT Department 1st Week of January

4 Check if it is align with the brand manual of HDI 3rd Week of February

5 Implement the Website 4th Week of February

Website Integration (Creatives Department)

Departmental Action Plans:
 Human Resource Department

# Key Activities Target Completion

1 Plan for a seminar for the employees 4th Week of November

2 Find Resource speakers that can speak during the seminar 4th Week of December

3 Create a draft of the Program 1st Week of January

4 Post the official date in Workwise 3rd Week of February

5 Actual Seminar 4th Week of February

Training for the Employees (HR Department)
Departmental Action Plans:
 Human Resource Department

# Key Activities Target Completion

1 Plan for what type of recognition and rewards 1st Week of January
that will motivate the employees

2 Implement the idea Month of February

3 Measure its effectiveness Month of May

Rewards and Recognition (HR Department)

 Increase Return on Sales Increase the net sales
revenue

Strategy Map
Improve
Increase new
Marketing
customers Perception

Improve Increase Consulting

Improve information
Offering Knowledge
services
Selection

Develop knowledge Increase Use new

and skills Competencies technologies
Balanced Scorecard

Financial Performance

Unit/Person
Objectives Measures Target Time Frame
Responsible

Increase Return on December 2017- Sales &

Increase in Revenue Increase by 45%
Sales December 2018 Marketing Dept.

Increase the Net December 2017- Sales &

Income Statement Increase by 15%
Sales Revenue December 2018 Marketing Dept.
Balanced Scorecard
Customer Perspective
Unit/Person
Objectives Measures Target Time Frame
Responsible
Sales &
Increase new Two new clients
Number of Clients One year Marketing
customers every month
Dept

Sales &
Improve Survey among
Customer Marketing
Marketing Clients and One year
Retention Dept. and
Perception stakeholders
Creatives Dept.
Balanced Scorecard
Internal Business Processes

Objectives Target Time Frame Unit/Person Responsible

Improve Offering December 2017-February Creatives Department

Website Integration
Selection 2018 and IT Department

Increase Knowledge Increase the Product December 2017- February

HR Department
Consulting knowledge of employees 2018

Improve Information November 2017-January Operations and Business

Develop the HDI Hotline
Services 2018 Dev. Department
Balanced Scorecard
Learning and Growth

Unit/Person
Objectives Target Time Frame
Responsible

Increase the Product

Develop Knowledge and December 2017-
knowledge of HR Department
Skills February 2018
employees

December 2017-
Increase Competencies Leadership Trainings HR Department
February 2018

Creatives
December 2017-
Use new technologies Website Integration Department and IT
February 2018
Department
Financial Projection
Financial Projection