TOURISM MARKETING

TM123
SWEET FLAVOUR
CASE STUDY
Submitted To:
Ms. Ruby S. Melchor
Submitted By:
Ardiente, Mary Joy A.
Enarsico, Claire Baby Joy G.

TABLE OF CONTENTS

I.
II.
III.
IV.
V.
VI.

The Case
Problem Analysis
Vision and Mission Analysis
Selling Concept and Market Concept
Types of marketing in service industries
Recommendation and Conclusion

I. The Case

Vision
To be recognized as the best snack bar chain in the city. The goal is to
make people more aware of the healthy lifestyle and improve their quality
of life by offering them not only healthy but also tasty snacks.

Mission
To provide our customers refreshing drinks and healthy snacks for
reasonable prices. Sweet Flavour want to offer a healthy alternative to all
those fast food chains and other snack bars. The mission also includes
boosting the local economy as much as possible by using local ingredients
for our drinks and snack items.

Sweet Flavour is all about sweet stuffs from pastries, cakes,

sandwiches to coffees and juices- typically it is a snack bar but with a twist.
All products are of local ingredients. - Coffee and cocoa beans are from
Davao and Luzon, sweet potatoes and cassava flour for their pastries and
cakes. Luths business has been in operation for six years and is loacated
at IT Park, a very busy district where all people are in a rush 24 hours 7

days a week. Luth is one businesswoman is slightly conservative and

doesnt believe in technology. She believes that manual labour makes her
products the best, she often calls her products made out of love. Despite
her principle in running her business, Sweet Flavour was a favourite to
many because it was a place offering warm hospitality and as it was back
then the only snack bar that provides varieties of coffee in the area.

Luth then decided to open another branch located just two blocks
away from her first/main store. The second store offered the same products
and service but was a little smaller (85) the first (115 sqm). Both stores
offered old style dining tables and chair (4persons per table), Spanish
open-style windows and a music machine.

Everyday Sweet Flavour opens from 9AM until 8PM. At 8Am two
workers per store are already preparing the place. Luth closely monitors
her two stores, giving them instructions and helping them get things done.
She does almost everything in her little business but not the making of
coffee, waiting or cleaning the tables and the store, just so she can keep up
with the customers in-flow. The new store was keeping pace with the first

store, with a below 30% income compared to the first (Php 115,000.00
annual net income for 2010).

Almost every hour both stores are filled with hungry customers, some
would really wait for their coffee others would just buy pastries of cakes for
take-out. Her business was doing well until other coffee shops opened. She
knows she can outwit her competitors for she believes that her products
like the coffee, cocoa milk, cakes, local pastry and muffins are beyond
compare. According to her customer feedback sheets the taste, price and
quality of her products were well appreciated and what was well
commented was the hospitality of the place.

Bos coffee and Gloria Beans (opened 2010) are just two of the
competitors of Luth. As months went by, her number of customers were
decreasing. This started to bother her so she decided to see for herself and
visit the two coffee shops after she closed her stores. Luth discovered that
both stores were offering almost the same products but were priced an
average of 20 pesos higher from her products and the pastries were not as
tasty as her produce. This made her smile, thinking Hmmmm you cant
beat my store mu customers are loyal to me . She lingered a little

loner and noticed that they had more menu choices; service was well
provided that each customer has less waiting time for their orders, and
customers were cosily seated in nice chairs and were enjoying WIFI
provision. What she saw made her uncomfortable making her wanting to
leave. Just when she went out she was greeted by a group of young
professionals who were coming in; it took her time to recognize them. While
taking a walk to her store she realized that they were her loyal customer.

II. Problem Analysis

This chapter is to enumerate the problems and analyse in what way it

becomes a problem. It is quite noticeable based on the facts given on this
case that there are a significant number of problems that can be
enumerated and are needed to be solved. These problems are also
significant enough to determine the success or failure of the given business
which is the Sweet Flavour. To enumerate;

A. The menu- it is stated on the facts that Sweet Flavour serves all
sweet stuff, from pastries to cakes to coffee and cocoa. We see
this as a problem, first because it does not live up with the
businesss Vision and Mission to serve healthy alternative to fast
food chains. Though sweets can be good at times, but it becomes
a problem in the long term, consumers can develop variety of
diseases best examples would include diabetes, heart disease and
other obesity related diseases. Second reason why the menu is
one of the problems is the lack of variety. According to the theory
of marginal utility people tends to be satisfied once they consume
something, the more they consume the less satisfaction they feel.
Now, applying such theory to the menu that lacks variety people
would tend to find other alternatives to satisfy themselves. Thus,

the menu that lacks variety becomes a problem because people

would go to other producers (the competitors) to find an alternative
since they cant find anything else.
B. Manual Labor as stated in the facts all the products that are
served in Sweet Flavour are manually made, though this can be a
good thing since the quality of the products can be seen at the
same time it becomes a huge problem to the business. In a
businessmans perspective you would never want a customer
waiting, time is gold, every minute that the customer waits the less
satisfied he/she becomes with your services. Thus, if the customer
needs to wait for a long period of time just for a cup of joe he/she
would rather go to a competitor who serves a lot faster. Second
reason why manual labor becomes a problem is because of the
distribution of labor is not balanced thus some are doing more and
some are doing less, with this as a fact the manpower would not
be enough to cater the inflow of customers. Thus, would lead to
more customers waiting and more customers leaving.
C. Store hours- it was given that the store hours for Sweet Flavour
was 8AM-9PM, though these business hours is good but too
traditional and does not meet the needs of the customers. We
think that this is a major problem; it was a fact that the store was

located in a business area wherein there are economic activities

24/7. We can imagine the profit that we can gain within the time
when the store is closed; it is also common knowledge that in an
IT Park there are more activities at night than at day. Thus, we are
not covering all of our target markets.
D. Old style dining tables- there are times that it is nice to relax and
enjoy the vintage designs of tables, windows, chairs etc. but, we
can see that in a place like IT park we cannot afford such luxury.
People are stressed with their work, frustrated with things
happening in the office and a lot more. Thus, they would like to
dine like a king, to dine with comfort. This becomes a problem
because our store is not offering that and our competitor does.
Simply said they are sucking out our customers by just offering
comfortability.
E. Technology- a good old conversation with friends is at times
good. But if you are to bring your work at lunch/snack you a good
WIFI service would be really convenient. Since Sweet Flavour
does not offer this our customers would tend to be more attracted
to the competitors because they offer such services.

III. Vision and Mission Analysis

Vision
To be recognized as the best snack bar chain in the city. The goal is to
make people more aware of the healthy lifestyle and improve their quality
of life by offering them not only healthy but also tasty snacks.

Mission
To provide our customers refreshing drinks and healthy snacks for
reasonable prices. Sweet Flavour wants to offer a healthy alternative to all
those fast food chains and other snack bars. The mission also includes
boosting the local economy as much as possible by using local ingredients
for our drinks and snack items.

In analysing a Vision and Mission statement there are certain components

that we must inspect before we can say that such Vision and Mission
statement is good. The criterion is listed as follows: Purpose, Strategy,
Values, Standards of behaviour, if we can find all in the out Vision and
Mission statement then we can say that we have a good one.

Lets Start with Purpose, in this criterion we must ask why the company
exists. It is clear from our vision and mission statement that our company
exist for the customers and the community, and thus, it is our identity to
serve them.

Second is Strategy, in this criterion we must ask how does the company
pursue its strategic objectives. From our vision and mission statement it is
clear that to achieve our goal (to be the best snack bar in the city) we must
serve our customers a healthy alternative to fast food chains.

Third is the Values, this standard asks what does the company believe in.
In our vision and mission statement it is stated that we believe that we can
help our community by using locally made ingredients (coffee beans, flour,
etc.).

Lastly is the Standards of behaviour, this standard asks how does the
company act/behave in doing the business. It is clear from our vision and
mission that our behaviour is improvement-oriented wherein we are trying
to improve the lifestyle of our customers to lean towards a healthy one and
at the same time help improve/boost the local economy.

Thus, we can conclude that with all the elements present the vision and
mission statement of Sweet Flavour is sound.

IV. Selling concept and Marketing concept

In this chapter we aim to apply the concepts of selling and marketing to
improve the business of Sweet Flavour.

Selling concept aims to establish sales by undertaking promotional efforts

without worrying customer satisfaction. Some good examples would
include handing out flyers for information dissemination to establish the
brand. In increasing the sales there are lots of gimik to choose from, from
buy one take one to group/ barkada packages and a lot more. This concept
does not necessarily establish a long term relationship to customers.

Market concept is quite different on the other hand it wants to achieve

organizational goals by delivering desired customer satisfaction and
establishing long term relationships to them. The best way to know what
the customers desire is to conduct a survey. Now, to establish a good
personal relationship to customers, visibility of the owner and the hospitality
of the employees must be observed at most.

There are differences between the two concepts but, if both would be
applied in the business it would virtually harmonize and would create good
results.

V. Types of Marketing in Service

Industries
There are three types of marketing in service industries namely: Internal
marketing, External marketing, and Interactive marketing. By nature these
three are different, but if applied simultaneously it would create a utopia-an
ideal business.

Let us talk about internal marketing first, we can say that the best
marketing that a business can have is the quality of food and services that
they offer. It would follow that if we would improve the goods and services
that we are selling we can satisfy the customers needs, and thus we are
marketing ourselves to them.

Our customers are not only looking for the quality of food and services that
we are offering, they are also looking for a place where they are welcome
to dine in as a king. And here interactive marketing would come in, wherein
the interaction between the buyer and seller matters. A simple smile from
the cashier can make a day of a person already, or a warm good morning
from the owner once you enter the store. It can be said that the personality
of the crew matters to the satisfaction of the customers.

Lastly we have the external marketing, there is a saying that says the word
of mouth spreads like wildfire and we can say that it is quite true. There
are times that the word of mouth cam make or break a business. This
strategy determines the overall satisfaction of the customer, as we ask
some of the customers from some businesses they say, If Im satisfied with
the services that you have provided, then I would recommend you to my

friends. We can only imagine the possibilities of a network of target market

unknown to us, a potential gold mine, and an untapped resource.

When this three is combined a school of thought would be formed, that if

we can satisfy our customers by the food and services that we provide as
well as the hospitality that we serve them they will bring more customers to
our doorstep.

VI. Recommendation and Conclusion

On chapter II of this case study we have discussed and enumerated the
problems that ere existing in the business of Luth the Sweet Flavour. In this
chapter on the other hand we would discuss on how we could solve this
problems according to priority. The basis for this priotization is the amount
of profit or increase in revenue that we would gain if such problem is
solved.

First on the list is to solve the problem on manual labor. Now, assuming
that a customer spends Php 100 per purchase and in manual labor every 5
minutes we can serve one customer, per 8 hour there would be an estimate
of Php 9,600 income. But if labor would be automated (oven with timer,
coffee machines, electronic mixers) every five minutes we can serve two
customers, it would be more efficient. There would be an estimate of 100%
increase in both productivity and sales per 8 hour.

Second problem that needs to be solved is the menu, first is to introduce

healthy options (i.e vegetable salad, vegetable sandwich etc.) for our
customers so that we could align with our vision and mission that we want
to give our customers a healthy option. Then, expand our menu so that our
customers would have a lot more options to choose from, a wide variety of
choices is nice especially the qualities of our products are already
established. If a customer spends Php 100 per purchase in a regular menu
then spends an extra Php 50 for the expanded menu and in every five
minutes we can serve two customers, per 8 hour of business there would
be an estimate of 50% increase of profit on top of the previous 100%.

Third is the store hours, it is a given fact that the business is located in an
area where there are activities are 24/7, there are a lot of untapped market
that we could get if we would be open 24/7. Thus, if a customer spends
Php 100 per purchase in a regular menu then spends an extra Php 50 for
the expanded menu and in every five minutes we can serve two customers,
per 24 hour business there would be a 75% profit increase on top of the
previous 150%

Lastly we must solve the problem in comfortability and technology (WIFI

services) we can replace the old dining sets with a new one for less cost
and then subscribe for WIFI services we could attract 50% more
customers. Therefore, if a customer spends Php 100 per purchase in a
regular menu then spends an extra Php 50 for the expanded menu and in
every five minutes we can serve two customers plus the 50% increase in
the number of customers willing to wait, per 24 hour business there would
be a 150% profit increase on top of the previous 225%.

In conclusion, there would not only be an increase in profit but also an

increase in patrons that would patronize our products.

In the end of this case study we were able to identify the problems that are
existing based on the facts given, also we were able to see what an ideal
vision and mission statement is. We were able to apply the concept of
selling and market that would align also to the facts given, we also pointed
out the types of marketing and given some examples. And lastly we have
given recommendations to the problems and have projected an increase in
profit by solving the later.