CUBO Modular Inc. Trailblazing Green Housing in the Philippines

Andrea Santiago () and Al Rosenbloom ()
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Andrea Santiago: University of St. La Salle
Al Rosenbloom: Dominican University

A chapter in Socially Responsible Consumption and Marketing in Practice, 2022, pp 139-157 from Springer

Abstract: Abstract (a) Situated faced: CUBO Modular Inc. (CUBO) was a modular home developer located in the Philippines. CEO and co-founder, Earl Forlales, along with his co-founder and COO, Zahra Zanjani, were brainstorming how to fulfill their vision to provide dignified homes for Filipinos that were fast to build, using sustainable materials that were more affordable and could withstand the weather conditions in the Philippines. Housing was not often thought of as representing socially responsible consumption. Yet Earl and Zahra were convinced that there existed a socially responsible market in the Philippines if they could create a product that was sustainable and affordably priced. (b) Action taken: Two central features of CUBO were their engineered bamboo construction and their modularity. Both were innovations. Engineered bamboo treated the natural wood to produce a robust, termite-, and moisture-proof building material. Modularity reduced production costs not only because of economies of scale but also because a CUBO unit could be built off-site and assembled on the home site rather than in the traditional manner, which was completely on-site construction. CUBO used social media to highlight its numerous awards in international home-building competitions and to target socially responsive consumers. (c) Results achieved: Demand had outstripped supply. CUBO has had both a significant number of inquiries and a significant number of orders. CUBO homes have a longer than expected wait time for delivery. New opportunities were presenting themselves, such as with resort owners. Additionally, government certification to produce more congregant/communal housing using engineered bamboo and modularity awaited confirmation of the stability of CUBO’s products through on-site inspection of consumer homes. (d) Lessons learned: Socially conscious consumption was now expanding beyond fast moving consumer goods. Pull strategies, by having the right sustainable product and leveraging social media, would find socially conscious consumers. Having a long-term vision and commitment to a sustainable product positions an entrepreneurial firm to take advantage of a growing consumer segment: values-driven consumers. Innovation not only can create new market segments but also it can break the heretofore “premium” pricing that sustainable products commanded in many markets.

Keywords: Sustainable housing; Marketing strategy; Targeting; Consumer behavior (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-16-6433-5_11

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DOI: 10.1007/978-981-16-6433-5_11

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