More than 40 percent of respondents strongly agreed that foreign brands are both a threat and more preferable to Penshoppe. However, over 30 percent were neutral or unsure about Penshoppe's efforts to compete against foreign brands, indicating consumers may be unaware of Penshoppe's strategies. The survey found over 40 percent of respondents strongly agree Penshoppe's store design appeals to youth, and the majority agree the layout is convenient and complements products. However, over 35 percent were neutral on whether celebrity endorsements enticed product purchases, suggesting endorsements may not be optimally effective. Most respondents were neutral about Penshoppe's products, neither liking nor disliking them. This indifference suggests products do not make

1. A Study on the Market Growth of Penshoppe
A Research Paper
Presented to the
Marketing Department of
De La Salle University
In partial fulfillment
Of the course requirements
In Marketing Research
(MARKRES K31)
Submitted to:
Prof. Claro Gañac
Submitted by:

2. Andrew S. Ayala
Candee T. Chan
Ynna P. Corcuera
Michelle Mae B. Gonzales
December 11, 2014
CHAPTER 1 : INTRODUCTION
A. Background of the Study
PENSHOPPE is the flagship brand of Golden ABC, Inc., a leading fashion
house from the Philippines. Golden ABC also houses Oxygen, Forme, Memo, Regatta,
Tyler among its dynamic family of brands. The brand Penshoppe offers a fresh take on
casual wear for young adults which is also made affordable for them.
Established in Cebu in 1986, the brand had first conquered the Visayas and
Mindanao markets. Penshoppe then expanded to Metro Manila and opened its first
store in SM City North EDSA in 1991. Since then, Penshoppe's network of stores has
grown to over 300 sites, all strategically located in the key areas where its target
demographic shopped.
Even though the company is one of the best selling retail brand in the retail
industry, the group cannot help but wonder why during these past few years,
Penshoppe seems to be weakening in terms of sales in the perspective of the
consumers.

3. Based on Euromonitor, Penshoppe is among the top 5 best performing retail
store for men and women. But when foreign brands entered the market 2 years ago,
their market share are greater than Penshoppe as of now. The market share of
Penshoppe has been constant in the past 3 years, which should not be the case since
it has dominated the retail industry since 2006.
B. Conceptual Framework
Figure 1: Conceptual Framework
Figure 1 shows the conceptual framework that will serve as the guide
for the group on the marketing research for Penshoppe. Different variables may
affect the purchasing attitudes of different consumers. These variables

4. determine the preferences of consumers towards Penshoppe and factors their
purchasing powers.
C. Statement of the Problem and Hypothesis
Penshoppe has been a growing retail store in the Philippines, but became
stagnant when foreign brands started to invest in the country. In a span of four years,
these foreign brands came at par with local brands. How will Penshoppe be able to
maintain its share in the market while competing with these foreign investors? The
hypothesis of the study are 1.) Most of the younger generation today only know the
name Penshoppe but they do not know the products and services offered by this
company which shows that Penshoppe is having difficulty satisfying their customers by
offering the items they demand, 2.) The entrance of foreign brands decreased the
market share of Penshoppe due to factors such as better designs, variety of items,
quality of the items and the like brought by the foreign brands.
D. Assumption of the Study
The assumption for this study is that the entrance of foreign brands decreases
market share of Penshoppe due to better designs and better quality brought by the
foreign brands. Penshoppe is slow in grasping the new trend that the consumers are
looking for. Even though they produce great designs and collections, they are behind a
step from other foreign brands.
E. Scope and Limitations

5. This study would only revolve around the perspective of consumers and this
does not involve the management of the firm. Information obtained for this study are
from surveys answered by consumers. The surveys obtained are from a certain sector
only due to the lack of time and resources.
F. Significance of the Study
This study is relevant because it will answer the problem why Penshoppe’s
market share seems to be in constant or decreasing rate. The group would want to
know the factors of that affects the declining growth of the company and how it should
be solved by the company. Through this study, the company would be able to come
up with new ways on how to improve their sales and be in par with the foreign brand.
CHAPTER 2 : METHODOLOGY
A. Research Design
According to the non­experimental classifications of Burke Johnson, the group
used the causal­comparative research. This research aims to determine the cause and
effect of certain variables in the study. It is the simplest quantitative approach to
determine comparisons between the variables involved. Moreover, this kind of
nonexperimental research analyzes data to establish relationships of the variables.
This certain design was used in the study because the study involves the
comparison between brands, such as Penshoppe and other retail brands that cater to
the same target audience. This paper aims to determine which variables the

6. consumers consider for them to buy a certain brand. Furthermore, in determining such
variables such as availability, innovation, convenience, quality and the like, the
researchers are able to realize the cause of why consumers buy a certain brand. In
addition to that, the researchers are able to indicate the effect, which is the brand most
people buy because of certain variables.
B. Sampling Method
The main data gathering method our group used was with the use of a physical
survey. A survey is a method of collecting data and information from individuals. It is
an avenue where individuals may be contacted and surveyed in different modes: by an
interviewer in­person or on the telephone, by internet or paper questionnaires.
However, for this case the group chose to conduct a survey that can be participated
and completed by the chosen target audience around the university campus.
The group decided to conduct a survey to be answered by one hundred (100)
respondents. The carefully constructed survey was given personally by group
members to the respondents. The respondents were randomly selected from a list of
students within the De ​
La Salle University­Manila. The common denominator of all of
these students is that they are all enrolled in De ​
La Salle University­Manila and they
are involved in purchasing items offered by Penshoppe and other brands that offer
similar items.
The objective was to find out what the consumer wants, to know if the
customers are aware with the Penshoppe brand, if they are satisfied with the designs

7. and quality of the stated products, to discover insights regarding product development,
advertising strategies and its effects and the attitude of consumers towards the inflow
of foreign brands that share the same market share with Penshoppe. As a small group
of students, we decided to use this avenue for data gathering as is does not require
much cost, it is faster, easier to analyze and user friendly for the people the group is
targeting to be participants for this study.
C. Statistical Treatment of Data
The group collected data via physical surveys. The survey contained a series of
questions regarding attitudes towards the brand, opinions about the endorsements,
the store layout and the overall products of penshoppe.

8. More than 40 percent strongly agreed that foreign brands are both a threat and more
preferable than Penshoppe. Yet more than 30 percent is neutral or unsure whether or not
Penshoppe did something to compete against the foreign brands. This indicates that the
consumers are unaware of the efforts that Penshoppe do, that Penshoppe might not be
making enough noise. Their advertisements are not making an impact and catching enough
attention in order to make Penshoppe a major competitor in the market.

9. 40 percent of the respondents strongly agree that penshoppe’s store design attracts
the age group they are targeting which are the youth. The majority of the respondents also
agree that penshoppe’s store lay­out both convenient and also compliments their products.

10. Greater than 30 percent agreed that celeb endorsements and endorsers help
penshoppe be more competitive against foreign brands. But more than 35 percent were
neutral on whether or not endorsers enticed them to buy penshoppe’s products. The chart
shows that the endorsements of penshoppe are helping them but the chart also shows that
people are neutral towards whether or not it enticed them to buy the product because of the
endorsements. The endorsements might be helping them but how much are they being
helped? Are they spending more that what they are gaining?
Most of the people said that they were neutral towards the products of penshoppe.
They did not say that they dislike the products of penshoppe but they did not also say that
they like it. The people’s indifference towards the product may indicate that the product is just
not making enough impact to be part of their top list of products. By being indifferent,
consumers do not really care what Penshoppe is producing. They do not care whether
Penshoppe is releasing a new collection or if there is a sale.

11. CHAPTER 3 : PRESENTATION AND DATA ANALYSIS
A. Screening
A survey has been conducted to 103 students, where 83 of those students are
from De La Salle University­Manila while 18 of those students are still in high school.
The majority of the respondents are 16­25 years old, therefore, are potential target
market of Penshoppe as young adults. According to the survey, these students have
purchasing powers coming from their allowances. Regarding the brand Penshoppe,
100% of the respondents are aware of the brand. Although 56% mentioned that they
only visit Penshoppe once a year and 35% said that they have never bought anything
from Penshoppe.
B. Attitude towards foreign brands
Most respondents observed that the investment of foreign brands in the
Philippines have become a threat to Penshoppe, and even to other local retail brands.
A number of these students would also affirm that these brands are better in terms of
their products. It proves as well that the respondents would prefer to buy foreign
brands rather than local. In line with this, more respondents were leaning towards
agreeing that Penshoppe did not change their strategies to compete with the coming in
of foreign brands. Overall, Penshoppe is observed to be declining due to their
competitors’ strength.
In the survey conducted, the group asked the respondents to rank the different
retail brands in the Philippines which includes: Penshoppe, Bench, Guess, Artwork,
People are People, Folded & Hung, Uniqlo, H&M, Forever 21, and Cotton On. The top

12. 3 brands that are ranked number 1 in the survey are H&M, Forever 21 and Uniqlo.
These are foreign brands that came to the Philippines 4 years ago or even less. Out of
10 options, the highest rank that Penshoppe got was 5th. 43% of the respondents
ranked Penshoppe from 6th­10th compared to the other brands. This goes to show
that even though Penshoppe made its name in the retail industry, it is having a hard
time competing with its rivals.
C. Endorsements
Consumers do not really buy from a store depending on who is endorsing it as
of the moment. But consumers usually remember a brand through the endorser and
that is when they will think of visiting the store. They often think of the artist, then what
they were wearing then go to the store to look at the new collection that the celebrity is
endorsing.
D. Merchandise Lay­Out
Consumers do not mind the overall appearance of Penshoppe’s stores, but
when presented with the option to change their lay­out, most respondents would
suggest that they do. This strategy would keep them at par with the appearance of
foreign brands’ stores. Also the interior design of Penshoppe stores should be able to
compliment the variations of their products. It should be able to entice consumers to
visit their stores in conveniently placed locations such as nearby malls.
E. Product

13. According to the survey, most respondents are neutral when it comes to the
designs of the products of Penshoppe. Although Penshoppe describes themselves as
the “leading fashion house” in the Philippines, the brand has failed to produce new and
trendy designs.
CHAPTER 4 : CONCLUSIONS AND RECOMMENDATION
A. Conclusion
The research conducted involves knowing if variables such as merchandise
lay­out, attitude towards foreign brands, celebrity endorsers and product attributes are
significant factors that influence the purchasing attitudes and decisions of consumers
towards brand preference. After conducting the study to the students of De La Salle
University, we found out that the data collected supported the hypothesis of the study
which are: 1.) Most of the younger generation today only know the name Penshoppe
but they do not know the products and services offered by this company which shows
that Penshoppe is having difficulty satisfying their customers by offering the items they
demand, 2.) The entrance of foreign brands decreased the market share of
Penshoppe due to factors such as better designs, variety of items, quality of the items
and the like brought by the foreign brands. It was also discovered that many believe
that Penshoppe’s products are expensive while some still say it’s too cheap based on
the individual’s financial capacity. The group concludes that Penshoppe is currently in
the mature product cycle stage. Where in their sales are stable and their growth is
stable. By not researching for new ways to increase sales and growth, Penshoppe
might be going towards the declining product cycle stage. After 10 years or so,

14. Penshoppe would be struggling to keep up with the new and fresh brands while their
profits are dwindling down, barely paying up the cost of their production.
B. Recommendation
The practical implications of this study can be useful for Penshoppe to
determine what kind of approach they will conduct on their upcoming products.
However, our study is only limited to the students of DLSU. We recommend future
researchers to conduct their research to other types of consumers in the market to be
able to gain a better and more accurate understanding of the different aspects that can
affect how the consumers decide on what brand to choose for their daily use.
APPENDIX
DATA:
Table 1: Awareness of the Brand
YES NO
Are you Aware of
Penshoppe
103 0
Table 2:
Once a year Once a quarter
23
Once a month
22
Once a week
Visit Penshoppe 58 23 22 0

15. Table 3: Attitude towards Brand
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Foreign
brands are a
threat to
Penshoppe
45 36 12 5 5
Penshoppe
did not do
anything to
compete
20 24 33 16 10
Foreign
brands are
better than
penshoppe
44 34 20 0 5
would rather
buy foreign
brands rather
than
penshoppe
44 37 14 3 5
Table 4: Endorsements
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Celebrity
endorsement
s help
penshoppe
compete
33 32 21 13 5
celebrity
endorsers
factor to
consumers
26 43 17 13 5

16. preference
enticed to
buy because
of endorser
14 16 42 18 14
prefer local
endorser to
foreign
endorser
8 11 45 32 8
consistent in
choosing the
right people
to endorse
21 26 41 9 7
prefer
international
endorser to
promote
29 27 35 8 5
Table 5: Store Layout
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
penshoppe
has placed
itself in
convenient
location
28 39 22 9 0
should
consider a
change in
store
appearance
14 33 26 24 1
stores are
pleasing to
13 42 28 13 2

17. look at
interior design
compliments
products
17 36 31 11 3
store designs
attract youth
14 43 26 13 2
Table 6: Products
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Designs are
new
13 24 28 21 18
Designs are
trendy
8 27 36 25 8
designs are
lifestyle
appropriate
15 29 37 12 11
Products are
high quality
9 14 46 24 11
Products are
varied
17 29 38 14 6
Products are
reasonably
priced
22 27 34 11 10
Table 7: Ranking of Preferred Brands