# data[].attributes.body
The business operations of OTOP Hubs in the country  aims to:
> generate a total sales of P20M across the country in 2022 ;
> sustain the number of jobs employed in OTOP Hubs and in the supply chain mostly in agrarian reform communities;
> generate at least 10% increase in sales, jobs and investments in the succeeding years for the next 5 years
> gain 1M followers in Instagram and Facebook in 2022

MARKETING STRATEGIES
To achieve the objectives stated above, the following strategies will be done:
> promote OTOP hubs to media partners during Kapehan activities
> utilize partnerships  with SMED Council, partner agencies in OTOP SME development and with the private sector in advocating buy local, use local OTOP Products in their regular events
> seek the help of young entrepreneurs program (YEP) in the campaign and advocacy to promote OTOP products
> provide a special OTOP showcase during big DTI events for promotion and marketing of OTOPs.

Prepared By : Maria Odessa R. Manzano
OIC-Division Chief, BDD, DTI-Nueva Ecija

# data[].attributes.body
ACCEPTABILITY:
OTOP hub products are born from DTI and other partner agencies collaborative efforts  to initiate interventions such as product development, technology upgrading, capacity building, brand equity & development, and marketing platform & promotions to increase competitiveness an meet the quality demands of the market.

AFFORDABILTY:
OTOP products have a competitive advantage on price due to the following:
- use of indigenous materials found in the locality for fashions goods and accessories.
- packaging and labeling equipment where provided by DTI through SSF Projects (provision of tools and equipment to organizations in a shared system)

ACCESSIBILITY:
Aside from being located in heavy foot traffic locations, following the trend on online marketing platform boosts OTOP hubs to reach wider market and convenience to consumers who are looking to satisfy their needs and wants.

AWARENESS:
- Go Lokal was launched by DTI as a market access platform for MSMEs in collaboration with select retail partners for brand management and market acceleration realized through the Go Lokal! Concept Store.
The program’s primary goal is to help the country’s MSMEs enter the mainstream market via the free services offered by DTI.
- Social Media Postings (DTI and Individual MSMEs)
- Conduct of Domestic trade fairs
- Conduct of Selling missions
- Participation to International Trade fairs

# data[].attributes.body
OTOP Hubs are currently suffering the negative effects of the pandemic. Products sold in OTOP Hubs are mostly, if not all, pasalubong items that people residing in the locality may not necessarily have high interest and demand for.

With the very limited tourism activities allowed (which are also subject to a sudden declaration of lockdowns), OTOP Hubs need to adopt a combination of the following strategies:

1. Market Shift: strengthen inter-region exchange of products and offer pasalubong products to different localities.
2. Product Mix: a shift in design direction during ProDev activities to also develop products with high local (regional/provincial/municipal) demand.
3. Enhance partnership with institutional buyers and stakeholders (payment and logistics)

# data[].attributes.body
OTOP Hub as a brand is strongly positioned as a nationwide outlet providing wide variety of best products compliant to standards for quality and safety. The Hub is likewise promoted as an area where customers can buy products from various individual producers in a single shop and transaction.

While the OTOP Hub has established the image for quality, safety and variety, OTOP Hubs also needs to fully execute its brand as outlets supporting intra-regional trade with the least possible overhead costs.

Online promotions and marketing must be balanced with the establishment of digital and logistical capabilities of fulfilling online orders to minimize buyers' remorse and loss of confidence for future transactions.

With the advent of import products and ease of purchasing such, OTOP Hub operators and the DTI must promptly execute strategies for intra-regional trade, ecommerce and logistics.

# data[].attributes.body
Strength:
1. Products are certified safe for public use/consumption
2. Availability of funds for local and national promotions
3. Wide variety of quality products (one stop shop)
4. Located in strategic/key areas
5. Can fulfill orders of products from various producers thru single transaction

Weaknesses:
1. Product prices are comparably higher compared to mass produced items
2. Virtualtradeexpoph.com
3. Online selling and deliveries
4. Intra-region exchange
5. Integrated systems for sales, inventory, orders etc

Opportunities
1. Wider coverage of logistics service providers
2. Market shift to locally produced products
3. Online platforms
4. Creative Cities Network
5. More channels available for product export

Threats
1. Advent of import products
2. Policies and processes for export
3. Lockdowns due to rise in COVID19 cases
4. Calamities

# data[].attributes.body
1. Looking for products which are representative of a specific place/culture/event/tradition/recipe
2. Needing "old/nostalgic but upgraded" product
3. Looking for products from highly skilled locals and certified safe for consumption
4. Products easy/worth the hassle to transport
5. Looking for gift items/going to events
6. Tourists looking for keepsake of his/her experience

# data[].attributes.body
>  rethink and consider alloting additonal costs and efforts to increase and strengthen online presence
> find better ways to impact digital customer experience since digital engagements are  now a permanent shift from pre-pandemic days
> reinforce collective branding for OTOP Hub sellers and relay messages and stories to customers to attract customer attention and encourage purchasing
> leverage partnerships for new opportunities

# data[].attributes.body
T h r e a t s
> new entrants: new competitors are constantly appearing
> increase of cost of inputs ( increase in cost to manufacture products)
> tax increase
> increase in competitor activity
> price wars with competitors ( local souvenir shops)
> online competitors
> frequent changes in regulations & travel restrictions

O p p o r t u n i t i e s
> growing market: Emergence of new markets due to change in consumer behavior and customer needs

> existing network and OTOP Program partners: Co-promote with sellers and program partners

> new products trends: Due to changing customer tastes

> technological advances: availability of new technologies  that could reduce the cost of operations
> new distribution channels: Online stores , and other platforms

> worldwide internet growth surge: Increase Marketing campaign/  Capitalize on E-commerce visibility

> changes in government political factors

# data[].attributes.headline
13: Current Marketing Situation | Review of Distribution

# data[].attributes.subject
13: Current Marketing Situation | Review of Distribution

# data[].attributes.body
Over 23 branches all over the Philippines are established.

But these OTOP Hubs are experiencing difficulty amid the pandemic. Foreign tourist visits have significantly declined causing a huge decline in sales of OTOP Hubs.  Local tourist visits (tourists coming from other provinces) have also declined due to travel restrictions and for fear of being infected by the virus. That leaves only the locals (who may not have as much interest in the local products as the tourists as to them it is "not a pasalubong" and there is no one to give it to) and the tourism-businesses such as resorts, restaurants, and hotels, (who would not also have the buying power nor the motivation to buy as they are also suffering losses from the decline in tourist visits)

# data[].attributes.headline
12: Current Marketing Situation | Review of Competition

# data[].attributes.subject
12: Current Marketing Situation | Review of Competition

# data[].attributes.body
Competitors
Kultura
Local Souvenirs Shops

Kultura

nationwide coverage (like the OTOP Hub)

products sold in one branch may be found in other branches too (this is an advantage, they sell Philippine souvenirs, so when you go to a branch in Cebu, you may also find products from Palawan / other provinces)

more pricey than the OTOP Hub. They maintain a relatively large store which means they have to earn that back by adding it to the products' prices.

high quality products that have a stable production

Local Souvenir Shops

local coverage

products sold in a local souvenir shop cannot be found in souvenir shops of other locations / provinces. (there may be a similar product but not from the business that produced such product. e.g. banana chips from one local souvenir shop is different from banana chips from another local souvenir shop)

cheaper since they have low overhead cost.

some "start up" and "prototype" products may be found here. Appears personalized and custom than one coming out of a production line.

# data[].attributes.headline
11: Current Marketing Situation | Product Review

# data[].attributes.subject
11: Current Marketing Situation | Product Review

# data[].attributes.body
Every OTOP Hub in the country is unique in that the products sold in it are most likely found only in the certain place. What you find in OTOP Hub Negros Oriental, cannot be found in OTOP Hub Davao, and vise versa. As such, we cannot identify top products.

However, we can specify a profit margin starting at 20% for products sold in the OTOP Hub. An OTOPreneur who is selling her products in the OTOP Hub was visibly impressed when here items were sold more in the OTOP Hub than in her small stall in the same location (in the mall) even if it was sold at a higher price than in her stall. This made her decide to just focus on production and leave the marketing and selling to the OTOP Hub.

# data[].attributes.headline
10: Current Marketing Situation | Market Description

# data[].attributes.subject
10: Current Marketing Situation | Market Description

# data[].attributes.body
Target Market
Primary: Foreign and Local Tourists
Secondary: Supporters of the Local Industry, Millennials, Businesses in the Tourism Industry (Hotels, Resorts, Restaurants)

Competitors
Kultura
Local Souvenir Shops

Distribution
As of 2019, there are 23 OTOP Hubs all over the Philippines each selling products of their own province. The idea is when you go to an OTOP Hub, you are able to find all the top products that a province has to offer, where the product representing the town is being sold.

# data[].attributes.body
OBJECTIVES
The establishment of OTOP Hub or OTOP Stores is designed to :
> provide a one stop shop venue,  showcasing the best of one town one product  which is accessible to target market;
> re-invent selling strategies by means of promoting the towns and the best of their products in one structural platform
> showcase a learning venue for towns and their  products  as a reflection of culture, language, history and evolution of developments in businesses; and
> provide  marketing and promotional assistance to OTOP micro-entrepreneurs.

ISSUES
With the establishment of OTOP Hub in strategic areas, observations and feedbacks both from the buyers and manufacturers are as follows :
> OTOP Hubs became tourists destinations
> OTOP Hubs are useful sites when it comes to benchmarking missions and learning sites
> OTOP hubs selling food items should require the suppliers for their FDA LTO Accreditation to ensure food safety and hygiene
> the OTOP hub management and the suppliers should communicate regularly as to stock inventory, shelf life and storage safety and management;
> It  helps the micro-entrepreneurs in providing a decent space for marketing and selling of their products;
> It  inspires women and other sectors to innovate products and generate more product development ideas;
> It  helps in generating local sales, sustain jobs, inclusive growth  and investments in the countryside ; and
> It promotes empowerment of women and indigenous people and enhancement of industry clusters.

# data[].attributes.body
PRODUCT: Tangible
products and skills-based services

·         Processed Food : processed fruits and nuts, delicacies and ‘kakanins’. juices and beverage, pastries and bakery goods, preserved food, sauces, cakes and desserts, wine, tea, food supplements, culinary-based specialty products

·         Agri-based Products: coffee, cacao, agricultural produce, agri-processing (processed meats, coconut oil, etc), seafood (preserved and processed)

·         Arts and Crafts : coco coir, weaves, bamboo, paper artistry, wood

·         Home & Fashion/ Creative Artisanal: gifts, souvenir items, furniture, décor, houseware, fabrics, garments, toys, textiles

·         Services (skills-based) and others: hilot, sculpting, wellness products (essential oils, etc), industrial products, personal care (soaps, etc), cosmetics

PRICE: Prices vary depending on the item sold and at a reasonable price

·         Processed food: price range from P 50 – 500 per item

·         Agri-Business: price range from P 50 – 500 per item

·         Arts & Crafts: price range from 80 – 2,000 per item

·         Home & fashion / Creative artisanal: Price range from 150-3,500

·         Service (skills-based) and others: 50-500

PLACE:

The hub can be found in mostly in airports, terminals, pasalubong centers, tourist spots, Negosyo Centers, public markets, and other consumer-frequented locations including malls. As another flagship market access program by the Department of Trade and Industry, this serves as a marketing vehicle and incubation platform to promote and champion OTOP products.

PROMOTION:

·         OTOP hub promotions through social media platforms such as youtube and Facebook by DTI and individual MSMEs accounts

·         DTI Initiated promotions such as Conduct of Trade fairs and Telradio episodes (TNK sa Perfect morning with Sheryl Cosim, a teleradio series featuring OTOP MESMEs, which is aired every Thursday in TV5.

·         Radio Station promotions

·         Pasalove: features perfect- for-the holiday products such as gift and household items and food products from the 16 beautiful regions of the country posted on DTI Youtube Chanel.

# data[].attributes.body
CUSTOMER:

OTOP Hub displays and caters to array of pasalubong products from food to non-food from different localities and communities that are rooted in its local culture, community resource, creativity, connection and competitive advantage. An item in OTOP hub tells you the story of local artisans and producers which you can bring home and tell the story yourself to your family and friends.

COST:

The strategic location of OTOP hubs provides convenience to OTOP players in replenishing sold out products. The centralized approach reduces unwanted excessive freight charges to producers creating competitive prices which eventually benefits the MSMEs.

CONVENIENCE:

Each OTOP hub is strategically located in heavy foot-traffic locations including malls, terminals, airports and public markets for better visibility and access to walk-in buyers.

For customers who wants to experience other local products, MSMEs under OTOP Philippines are also given ample exposure through conduct of trade fairs and other marketing events such as market matching and business missions outside the country.

COMMUNICATION:

DTI interventions such as digitalization equips OTOP players to enhance communication skills using existing on-line marketing platforms.

# data[].attributes.body
OTOP Philippines Hub or OTOP.PH is a retail store or spaces where products from One Town One Product offerings can be found. Catering to the general mainstream market of both local buyers and tourists, these one-stop shops offer a general outlet for quality OTOP merchandise before they level up to the premium market catered to by Go Lokal and other high-end market platforms.

As a one-stop shop, the OTOP Philippines Hub can be a redesigned pasalubong center showcasing mostly OTOP products including OTOP from other regions. The hub can be found in mostly in airports, terminals, pasalubong centers, tourist spots, Negosyo Centers, public markets, and other consumer-frequented locations including malls. As another flagship market access program by the Department of Trade and Industry, this serves as a marketing vehicle and incubation platform to promote and champion OTOP products.

# data[].attributes.body
Slides 1-5 - Jolu
Slide 6-9 - Ada
Slide 10-13 - Anton
Slide 14-15 - Dhal
Slide 16 - Odessa