mang inasal marketing plan PDF

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Summary

In partial fulfillment of the requirements for STRAMAN (Strategic Management) submitted to Mr. Francis LoseoLEACHON, Rachel Caroline V. 11019492 ONG, Clarence Kane C. 11007672 REYES, Sedfrey C. 11031344 VICENTE, Mary Antonette D. 1101505TABLE OF CONTENTS I. Executive Summary II. Research Design Meth...

Description

In partial fulfillment of the requirements for STRAMAN (Strategic Management) submitted to Mr. Francis Loseo

LEACHON, Rachel Caroline V. 11019492 ONG, Clarence Kane C. 11007672 REYES, Sedfrey C. 11031344 VICENTE, Mary Antonette D. 1101505

TABLE OF CONTENTS

I.

Executive Summary

II.

Research Design Methodology

III.

Introduction

IV.

External Analysis

7

V.

Industry Analysis

19

VI.

Company Analysis

VII.

Strategy Formulation

VIII.

IX.

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25

a. External Factor Evaluation

45

b. Competitive Profile Matrix

52

c. Internal Factor Evaluation

63

d. SWOT

68

e. SPACE

71

f. I-E Matrix

74

g. Grand Strategy

75

h. Summary of Strategies

77

i. Quantitative Strategic Planning Matrix

77

Recommendations a. Strategic Objective

82

b. Recommended Strategies

83

c. Financial Projection

85

d. Departmental Programs

93

Evaluation and Success Indicators a. Balance Scorecard

100

b. Contingency Plan

102

X. References X.

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103

Appendix a. Financial Statements

106

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I.

Executive Summary Mang Inasal is the Philippine’s fastest growing barbecue fast food chains which serves chicken barbeque, pork barbecue and other delicacies that are Filipino favorites. Being the market leader in the barbecue fast food chain industry, Mang Inasal is in a good position. Mang Inasal ranked first in the CPM with the rate of 3.80, 0.85 more than the second placer. This means that Mang Inasal excels and has a strong position considering price competitiveness, marketing and advertising initiatives, market share, product and service quality, branding and image, and product variety as the key factors.

The trending barbecue industry is the reason for Mang Inasal’s continuous growth. However, with the presence of its competitors and as fast food industry becomes saturated, Mang Inasal needs to exert more effort to further its market share. Other opportunities for Mang Inasal are technological advancement in the field of poultry production, growing number of people who uses Internet and mobile phones, increase in potential franchisee and demand for packaged food products. Other external factors that Mang Inasal is facing are health risk of poultry products while Filipinos are looking for healthier lifestyle, increase in number of foreign and local competitors. Despite the threats, Mang Inasal still managed to respond to the different external factors in above average manner with an EFE rating of 2.75.

Internally, Mang Inasal is also doing good having a rating of 2.95 in the IFE. Being a market leader in barbecue fast food industry through being proactive in marketing and advertising, and having strategic locations for their restaurants and having partnership to different

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companies like Deco’s and Oracle, gave Mang Inasal a good rating. Despite their poor restaurant environment, inconsistencies in the distribution and quality of products, Mang Inasal still manage to respond well to the internal factors.

Market Development is the most suitable strategy of the business having a rating of 4.25 rating in QSPM supplemented by Market Penetration with a rate of 3.85 and Product Development with a rate of 3.80. Market development strategy is to branch out stores in Mindanao specifically in urbanized cities. Market penetration strategy includes 1)Hire new product endorsers 2) Increase brand visibility by taking advantage of advertising on mass transportation systems 3) Intensify social media marketing 4) Organize a Mang Inasal Franchise Summit to attract potential franchisees. Product Development Strategies are 1) Forming a department regulating and evaluating branches and employee performances 2) Set up a sanitation compliance team to ensure that sanitary standards are met for each branch 3) Conduct research through mobile and online surveys 4) O3 Build a smooth communication channel for faster distribution of products from the supplier to the branches.

With the use of these strategies, Mang Inasal will continue to exceed its competitors having a ratio of 0.79 in the return on equity compare to others.

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II.

Research Design and Methodology Research Design The macro economic data that was used in this paper are from reliable online media newspapers such as the Philippine Star, Manila Times and other websites as well. For the industry data, the Mang Inasal website was used and an interview from a Mang Inasal franchisee, Ms. Andrea Tan Lim. Her Mang Inasal branch is located at the Robinson’s Pioneer.

To compare the financial analysis of the firm’s different competitors as well as theirs, the audited financial statements were obtained from the Securities and Exchange Commission. In addition, some key factors of the competitors’ information were acquired in their respective main websites.

Scope and Limitation This paper will be about Mang Inasal and all of its branches nationwide. However, the data that were gathered are only limited because Jollibee Food Corporation owns 70% of the shares of Mang Inasal. This becomes a hindrance to collect management; marketing and financial data such as the financial statements and internal strategies of the company as handling the employees is different in every branch because of its many franchisees. Also, it is very hard to collate data from the Internet because of the sources found are not reliable. The audited financial statements that were gathered from the Securities and

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Exchange Commission are only from 2008 to 2010. III.

Introduction

“Pang-masa ang lasa, affordable pa!”

Mang Inasal is one of the most prosperous fast-food chains in the Philippines. Founded by Edgar “Injap” Sia II, it started its operations in Iloilo City, Philippines, and the number of branches currently continues to grow in number. Right from the start, Mang Inasal was already able to catch the attention of the Filipinos since its products are mostly, if not entirely, Filipino in nature. Because of its increasing number of branches around the country, Mang Inasal provides numerous job opportunities to many, whether the available opportunities are on the supplier, the management, or the employees. Right from the very beginning, Edgar Sia already spurred Filipino’s interests in Robinson’s Place, Iloilo City, Philippines. What he did was he distributed this initial success in Iloilo City to TATC, Roxas City, Capiz (second branch), to Marymart Mall, Iloilo City (third branch), to Mall of Asia, Manila, and soon afterwards, to the rest of the Philippine Islands.

Mang Inasal is known for the “swiftness” and accuracy of its services, quality of its products, and its variety of food choices. The National Meat Inspection Service gave Mang Inasal a certified Double A on its commissaries (one in Iloilo and one in Manila), assuring safety when consuming their products. Apart from safety, Mang Inasal also allowed its Research and Development Department (RDD) to makes sure that all of its products are fresh and hygienic. The RDD also takes the responsibility of developing new products in Mang Inasal’s menu. In order to raise concerns in branches scattered everywhere within the

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country, Mang Inasal has its Support System to transmit to its main department and act upon giving remedial solutions. With cooperation between different departments, Mang Inasal remains to be one of the healthiest businesses in the Philippines.

IV.

External Analysis Economic Performance and Forecasts Market becomes saturated due to booming fast food industry

Food is one of the basic needs of every people, with these; food industry is growing as time pass by. Many people choose to put up or franchise different fast food chain as their business since this industry has a rapid growth.

No . o f Sto re s

Fast Food Stores in the Philippines (As of 2011) 800 700 600 500 400 300 200 100 0 Jolibee

Chowking

Mang Inasal

Greenwich

Mcdonalds

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As of 2011, the number of fast food industry in the Philippines continuous to grow with Jollibee has the highest number of branches in the country. Mang Inasal has 423 branches as of 2011 and still continues to grow this 2012.

Re1evance: As the market for fast food industry becomes more saturated, it means more competitors, direct or indirect, for Mang Inasal. Presence of more competitors means more choices for the people and it can take away the market share of Mang Inasal which may cause them a decrease in their sales.

High number of foreign companies entering the fast food market vs. local brands Passing of the Foreign Investment Act made the foreign investors to easily conduct businesses here in our country. The government gives incentives and other benefits that would encourage foreign investors to invest in our country. Some the reasons why foreigners invest in our country are low costs of doing a business. Wages are low compared to other countries like US. It is estimated that foreign investors can save 30%-40% in the cost of their business here in the Philippines. As the third largest English-speaking country in the world, it serves as an advantage for the Philippines as foreign investors can communicate with its employees easily. Another reason of foreign investors to invest in our country is that because of the tax benefits and incentives given by the government. Philippines also served as a strategic location for the reason of just few hours’ flight in the different major capital in the country and also reaching 500 million people of the Association of Southeast Asian Nation (ASEAN). Lastly, as Asian nation is starting to integrate a free trade between the countries of

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ASEAN, investors can take advantage of it and also capturing the ASEAN market.

As you can see from the graph that there is an increase of Foreign Investors here in our country. Though it decreases in the year 2007 because of the financial crisis happened and the decrease continued until 2009. However, investments increases at this time as some of the investors chose to invest in the country especially those who are based in Japan to have offices because of the fear of the tsunami incident in Japan last year.

Relevance: The presence of the foreign investors would more competitors for Mang Inasal especially if they engaged in a food service industry. Mang Inasal may lose some of it current market share as customers have more choices of fast food chain and restaurants in where they can dine in. Foreign businesses may exhibit better services, which can also be a factor of the loss of market share of Mang Inasal.

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Socio-cultural Factors Trending barbecue fast food industry According to Family Income and Expenditure Survey that 42.6 percent of the Filipino household’s income were spent on food. The increase in the number of workers who are engaged in business and administrative jobs and shifting consumers’ preferences towards leisure and convenience resulted to the rise in demand for fast food services. It is now became a trend and routine for middle class earners to eat at different fast food chain which causes the presence of 32,000 fast food outlets in the Metro Manila area only.

Today, the trend of barbecue fast food industry is in hype. As you can see in the graph that there are total of 604 branches of the top barbecue fast food chains in the country where Mang Inasal has the leading number of outlets nationwide, having 423 branches. 10

Relevance Mang Inasal, as a part of the barbecue fast food industry, can take advantage of the increasing trend for this industry. These would help them generate higher income and increase further its market share. They can also take this opportunity to attract more customers and outnumber its competitors.

Increase number of potential owners through franchising Filipinos now a days are engaging into franchising business since it requires less capital instead of making their own business. Actually, franchising contributes a lot in the growth of the Philippine Economy. According to the Association of Filipino Franchisers Inc. (AFFI), those there members increased to 130 from 75 during the year of 2010. At this moment, there 1000 brands that are being franchised in our country which are divided to five principal sectors: retail (clothing), cafes, cafes, fast foods, bakeshops, hospitality and wellness, and food carts. Around $6.6 billion of the Gross Domestic Product of the Philippines or 5% is contributed by franchising. Franchising also generates jobs for the Filipino people and therefore reduces unemployment.

The top industries in the Philippine franchises are water refill franchises since water is a basic necessity for every person, education and training franchises as fresh graduates looking for review centers for their licensure examination, bakery as bread has been a part of the Filipino culture especially pandesal, bar and café franchises, personal care franchises, service-type franchise, fast food chains, restaurants and food cart franchises as food is a basic

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necessity and Filipinos loves to eat.

Relevance: Mang Inasal also offers franchising to the community. In fact, it is one of the fastest growing franchises in our country. The fact it came from the fast food chain and restaurant franchises then it would continue to grow. A lot franchisee means more income for Mang Inasal and it will be introduce to different places especially to those areas where Mang Inasal is not present yet.

More Filipinos are moving to urban area as an increase in demand in packaged food products.

As more Filipinos migrate to urban areas for the reason of better job opportunities and a lot of people who are working and does not have the time to prepare their own food, it increases the demand for the packaged food products for an ease in meal preparation. This made them to eat in different fast food chains, restaurants and other independent food establishments like the carinderia for a cheaper food service.

CONSUMER FOODSERVICE MARKET SHARE BY TYPE 2005 2006 2007 2008 2009 Total 100 100 100 100 100 Independent Consumer Foodservice 65.3 64.7 64.3 63.6 62.7 Chained Consumer Foodservice 34.7 35.3 35.7 36.4 37.3 Fast Food 23.7 23.8 24.0 24.7 25.4

2010 100 61.3 38.7 26.3

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Full-Service Restaurants Cafes/Bars

28.4 26.6

28.0 26.1

27.6 25.6

27.3 25.0

26.7 24.2

26.2 23.5

Street Stalls/Kiosks

18.8

19.6

20.2

20.3

20.7

20.7

Pizza Consumer Foodservice

4.5

4.5

4.5

4.4

4.5

4.6

100% Home Delivery Take Away

2.6

2.6

2.6

2.6

3.0

3.2

As you can see form the graph that the market share of fast food industry continues to grow overtime and it grows faster during the year 2007 to 2010, which has the market share from 24% to 26.3%.

Relevance: An increase in demand for packaged would also mean an increase in demand for fast food chain where Mang Inasal is a part of. More Filipinos moving to urban areas to look for job opportunities would be a factor to Mang Inasal since they can employ workers from these people.

Filipinos are looking for a healthier lifestyle Now a days, there is an increase in the of people who are facing obesity, heart problems, diabetes and other health-related issue which make them more conscious on what they eat.

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According to the World Health Organization that by 2012, there will be 2.3 billion adults who are overweight and more than 700 million are obese. In 2003, it is reported that 19.6% of the Filipino population are overweight and 4.9% are obese. The numbers continue to increase during these days. Consumers are becoming more health conscious looking for more healthier and organic products.

Relevance Most of the products of Mang Inasal are meat which has high saturated and transfat that can lead to obesity and heart disease. For customers who are looking for a healthier food, eating in Mang Inasal may not be a good option for them and this may lead to a decrease in the market share of Mang Inasal as people will shift their interest to those restaurants who offer organic foods.

Health Related risks of poultry One common disease that we can get from poultry, especially chickens, is bird flu, which is a disease caused by Type A influenza virus that mostly infect birds.

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As you can see from the figure that bird flu cases increases from 2003 to 2006 then it falls in 2007. Although the cases and deaths of bird flu falls down, people are still being caution especially if there is a bird flu scare in the country.

Relevance Since the major product of Mang Inasal is its Chicken Inasal, health related risks of poultry can decrease the sales of Mang Inasal as people will avoid poultry products because of the fear of having a sickness that they can get from it.

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Technological Factors Technological advancements in the field of production

Many producers are interested to other alternatives in raising their chickens and technological advancements can help with these problems. They are looking to a type of chicken, which can be more suitable for outdoor production and niche markets. Out with the conventional poultry industry and it is now genetically refined. Chickens now grow faster, has a broad breast and limited feather for easier plucking and other traits that are considered desirable for raising large number of birds. Chickens now reach five pounds in six to seven weeks due to their rapid growth.

Relevance Because of the new technologies that are discovered in order to grow more chickens than usual, supply of chicken would not be a problem for Mang Inasal since it is their major products. The genetically refined chickens would also be bigger than the conventional chicken which can be an advantage for Mang Inasal because they will be able to serve bigger chickens to their customers. This would mean higher satisfaction for the customers.

Growing number of people who uses Internet and mobile phones As the technology aged, there is an increase in the number of Internet and mobile phone users worldwide. Since Internet are more convenient to use compared to those conventional ways, people preferred them more and its users gradually increasing. The same as to mobile phone, which are easier to use in communicating with other people, user of mobile phone are also rising. According to the secretary general of the UN’s International Telecommunications 16

Union, at the beginning of 2000 there are only 250 million users of Internet and 500 mobile subscriptions globally. But when 2011 approaches, it grows to 5 billion mobile users and 2 billion Internet users worldwide.

As you can see from the two figures above that the trend for using the Internet and Mobile Phones is increasing rapidly. Tho...