San Fabian Case

Strategic Planning

San Fabian Case

Submitted by:

Aisa Borcelis

Xiao Yun Chen

Celine Medina

Maricris Ramos

Joan Sumpio

Anissa Villegas

Leyan Zhang

I. Case Background

Distribution or Marketing Channels is a very important part of strategic planning when it comes to companies and their brands. As part of the 4 P’s of marketing, Place or Distribution will determine how your product will be visible to your target consumers. This is also one of the main factors that determine the success of the brand or the product. Unsuccessful planning of where your product will be placed can lead to lower brand awareness, decline in sales and may eventually lead to the “death” of a product.

San Fabian Supply Company was founded in 1958 by Paul Cheng with the company slogan: “If it’s quality you seek, seek San Fabian”. They are the leading supplier of construction materials in the Philippine construction industry with 90% of its sales coming from locally manufactured products. They have 3 branches, Manila, which is the headquarters of the company, Cebu and Davao. By 1986, the company became the largest supplier of building materials in the country by providing supplies for private, wholesalers and government contractors and construction projects – these reflects the wide reach of its networks; the company boasts of its aggressive, highly segmented sales force, targeting specific decision makers. In 1986, they were able to increase their sales revenue at around P320 million pesos in the same year. By 1987, San Fabian became the sole representative in the country of products manufactured by 67 firms, 54 of which are locally owned. The company is the exclusive distributor of the MacDowell line of construction products in the Philippines. One success factor of San Fabian Company is its unselfish provision of post and even pre-sales services free of charge.

MacDowell is a company that manufactures construction products has entered...