(Interview with Prof. Rey Lugtu by JOSEPHINE B. VALLE Researcher, BusinessWorld, for the Best Practices Forum series, published in BusinessWorld, June 27, 2007)
Of the many market segments in the Philippines, the overseas Filipino workers (OFW) segment seems to have the x-factor, attracting companies from different sorts of industries be it banking, real estate or cars.
Real estate developer Phinma Property Holdings Corp. known for its “best-value-for-money” homes, for one, acknowledges the growing allure of this market segment.
“Because of the affordability of our units and the locations, we’ve really been catering to local end-users where the market is still strong in that segment. But, we cannot discount the fact that the OFW market is really growing,” said Phinma Properties assistant vice-president for marketing and design Grant Orbeta.
Mr. Orbeta recalls the OFW market started getting attention around 2001. Since then, it has been expanding and companies pursuing this segment have likewise grown.
“Perhaps in the next three or five years, it will continue to grow more,” said the Phinma Properties executive.
Demand for jobs overseas has been improving, now with more employment opportunities for professionals. With this, the salary range of OFWs has also widened compared with a few years back.
However, targeting the OFW segment has its challenges said Phinma Properties’ Mr. Orbeta. “OFW marketing is a science,” he said.
As with targeting any market segment, one has to carefully understand his target — where they come from, where they are, their salary range, and many other details to draw a good profile of his market.
The added challenge to this usual market profiling, however, is the characteristics unique to overseas Filipinos which companies have to consider.
The Phinma Properties executive said as an example, “We found out that OFWs tend to buy [properties] in their original places of residence... this is a way of showing off.”
At the same time, these overseas Filipinos are exposed to different market practices in the countries they are located, thus approaches would also have to be tailored fit to these differences.
On the other hand, the good thing with the overseas market segment is that information on them is readily available from different government agencies. Thus, companies planning to target this segment would not have a hard time obtaining the necessary information for them to make a marketing plan.
Another hurdle for a company targeting the OFW market is the obvious distance of the client from the product. Compared with local buyers, communication with OFWs could take more time, so too could decision making.
Fortunately, the Internet and other technological advancements have extended the reach of the domestic players to a wider audience, even to farther places.
“One good example is Pinoydelikasi.com, an e-commerce site that markets and sells various Filipino food products including danggit, dried pusit, dried mangoes, canned Filipino specialties and other items,” said De La Salle University Professional Schools professor of management and marketing Reynaldo Lugtu, Jr.
For Phinma properties, Mr. Orbeta explained that the company tries to provide virtual tours in its website to bring the properties in a way closer to the market. He disclosed that the company is also even contemplating putting up live webcams at its project sites for those outside the Philippines to see the developments at the project sites in real time.
It is this match of technology, information, improving OFW conditions and the opportunities in the local scene that makes the OFW market very attractive to most companies.
Of the many market segments in the Philippines, the overseas Filipino workers (OFW) segment seems to have the x-factor, attracting companies from different sorts of industries be it banking, real estate or cars.
Real estate developer Phinma Property Holdings Corp. known for its “best-value-for-money” homes, for one, acknowledges the growing allure of this market segment.
“Because of the affordability of our units and the locations, we’ve really been catering to local end-users where the market is still strong in that segment. But, we cannot discount the fact that the OFW market is really growing,” said Phinma Properties assistant vice-president for marketing and design Grant Orbeta.
Mr. Orbeta recalls the OFW market started getting attention around 2001. Since then, it has been expanding and companies pursuing this segment have likewise grown.
“Perhaps in the next three or five years, it will continue to grow more,” said the Phinma Properties executive.
Demand for jobs overseas has been improving, now with more employment opportunities for professionals. With this, the salary range of OFWs has also widened compared with a few years back.
However, targeting the OFW segment has its challenges said Phinma Properties’ Mr. Orbeta. “OFW marketing is a science,” he said.
As with targeting any market segment, one has to carefully understand his target — where they come from, where they are, their salary range, and many other details to draw a good profile of his market.
The added challenge to this usual market profiling, however, is the characteristics unique to overseas Filipinos which companies have to consider.
The Phinma Properties executive said as an example, “We found out that OFWs tend to buy [properties] in their original places of residence... this is a way of showing off.”
At the same time, these overseas Filipinos are exposed to different market practices in the countries they are located, thus approaches would also have to be tailored fit to these differences.
On the other hand, the good thing with the overseas market segment is that information on them is readily available from different government agencies. Thus, companies planning to target this segment would not have a hard time obtaining the necessary information for them to make a marketing plan.
Another hurdle for a company targeting the OFW market is the obvious distance of the client from the product. Compared with local buyers, communication with OFWs could take more time, so too could decision making.
Fortunately, the Internet and other technological advancements have extended the reach of the domestic players to a wider audience, even to farther places.
“One good example is Pinoydelikasi.com, an e-commerce site that markets and sells various Filipino food products including danggit, dried pusit, dried mangoes, canned Filipino specialties and other items,” said De La Salle University Professional Schools professor of management and marketing Reynaldo Lugtu, Jr.
For Phinma properties, Mr. Orbeta explained that the company tries to provide virtual tours in its website to bring the properties in a way closer to the market. He disclosed that the company is also even contemplating putting up live webcams at its project sites for those outside the Philippines to see the developments at the project sites in real time.
It is this match of technology, information, improving OFW conditions and the opportunities in the local scene that makes the OFW market very attractive to most companies.
Comments