Janela Clavecillas

Mart Deraja
CASE- Goldilocks
Strategic Management
2:00pm- 5:00pm

EXECUTIVE SUMMARY

In 1966, two sisters namely, Milagros and Clarita and their sister-in-law Doris, opened a small
bakeshop along Pasong Tamo Street in Makati. Maria Flor, the third sister, suggested that they
name the enterprise “Goldilocks“, after the character in a fairy tale to make it easier for children
and their mothers to remember the bakeshop’s name, and also because it suggested luck and
prosperity.

Hard work, dedication, and an uncompromising commitment to total customer satisfaction paved
the way for its success. Goldilocks is currently the largest Filipino-owned bakeshop chain in the
world and the leading Quick Service Restaurant in the Filipino Food Category. The company has
expanded to more than 350 stores in the Philippines, with nine manufacturing plants located
across the country. Subsequently, the opening day total sales of P574 back in 1966 has
multiplied thousands of times over, reaching system-wide sales of over P6 billion as of latest
financial records.

SITUATION ANALYSIS

Current Company Status

Through the years, Filipinos consider Goldilocks not only as a brand, but a time-honored family
tradition. In its coming 50th year, Goldilocks continues to strengthen its position as a genuine
Filipino Icon. Every time you buy a product from them, you are not only getting a delicious slice of
cake or a scrumptious dish, you get a taste of something truly Pinoy as they say. What is truly
exceptional about Goldilocks is that it is much more than the sum of its parts. Beyond its iconic
status and unrivalled products, the company is faithfully built upon a solid foundation of values
and principles. This is unified by one simple vision: Goldilocks will be the leading Filipino global
brand that will fulfill the changing customer needs through world class products and services in
markets served.

This vision is closely and purposefully linked to the business and financial goals of Goldilocks. It
motivates the company’s strategic choices, leads to bigger and better innovation, drives brilliant
execution, and ultimately, sustains the Goldilocks legacy for future generations.

Industry Analysis

Goldilocks has excellent brand value in the Philippines, this same value is easily communicated
and adapted to new markets abroad. As shown by its strong international presence, Goldilocks
continues to provide its customers with a wide collection of baked goodies and home-cooked.
Currently, there are 24 Goldilocks stores in key cities in North America (22 in the United States
and 2 in Canada), as well as five outlets in Bangkok, Thailand.
Competitor Analysis

There have been other popular bakeries in the Philippines which is proudly Filipino owned such
as Délifrance, The French Baker, and BreadTalk are some of the most popular bakeshops in the
Philippines today. Some of the best includes Red Ribbon, and Bizu Philippines Patisserie. 

Still withholding, Goldilocks is considered as one of the oldest as well as one of the first
bakeshops founded in the Philippines. Today, Goldilocks is considered as one of the most
successful bakeshops in the Philippines today, opening a number of chains across the world. 

Red Ribbon Bakeshop is another popular name in the bakeshop industry of the Philippines.
Considered as the direct competitor of Goldilocks, Red Ribbon Bakeshop is known to provide the
same type of cakes and pastries available in Goldilocks. Currently under the management of
Jollibee Foods Corporation, Red Ribbon Bakeshop quickly became one of the most accepted and
recognized bakeshop across the Philippines. Another is Bizu Philippines Patisserie, considered
as one of the new additions to the few popular bakeshops and cafes in the Philippines.

Goldilocks has grown to become the largest Filipino-owned bakeshop in the world. Its competitors
may have come and gone but Goldilocks survived throughout its nearly 5 decades of existence.
For their display of exceptional business acumen, Goldilocks’ founders, sisters Milagros Leelin
Yee and Clarita Leelin Go were recently cited by CNN as being among the top women Chief
Executive Officers (CEOs) of food and beverage companies who have successfully reinvented
their brand. Although Goldilocks was well-known as the Philippines’ leading bakeshop by the
1990s, the company continued to look for ways to attract new customers while keeping their loyal
fan base.

SWOT
Strengths:
 Customer-focused
 Distinctive competence in the specialized & unique market
 Ability to add themes for all occasions
 Strong brand name
 Transportation costs that affect rivals do not affect Goldilock’s local supplier base
 Promotes family centeredness and Filipino values
Weaknesses:
 Too much variety may be intimidating and confusing to some customers
 Only focused on 20-40s age group, middle to upper class, younger professional crowd
 High overhead costs for operations
 Small footprint in the market
 Lack of management offices
Opportunities:
 High level of investment opportunities
 Attractive idea for joint ventures to increase market coverage
 No rival competition will yield rapid expansion opportunities
Threats:
 New competitors
 Price wars with competitors
 High costs of food and supplies may squeeze profit margins
  Current economy (recession)
 Large chains may seek acquisition or adopt our M/V/O

ASSUMPTIONS & LIMITATIONS

Statement of Objectives
 To identify the trends in the bakeshop industry to aid in coming up with strategies to
improve market share
 To identify competitors and classify the company’s strengths and weaknesses.
 To identify threats and opportunities for company’s expansion.

Scope and Limitation

The scope of this case is limited to areas that have existing Goldilocks branches.
Strategies that will be formulated will apply to actual branch operations. The case is based on
theories and no actual representation or survey was conducted. The analysis lies on the given
case facts and current Goldilocks developments. Decision and strategies are based on theories,
articles, personal preference and experience.

Basis of Assumptions
 Assumptions are based on gut feelings and first hand experiences from Goldilocks store.
 Existing market testimonies and activities in current events.
 Goldilocks’ website
 Go negosyo magazine 2009 edition has shown plans of expanding wherein expansion
was successful implemented from current updates in Goldilocks main website. It goes to
show that they were efficient and effective in the goal setting and they have exercised the
projected timeline.
 Theories, books and internet related to the scenario of the case.
 The role of strategy in success, p.6; Foundations of strategy by Robert Grant

PROBLEM ANALYSIS AND PROBLEM STATEMENT

In order to keep up with the existing demands in the market, Goldilocks needs to strategize in
order to retain its position.

What are the trends in their industry and how can Goldilocks use their Strategic Competitiveness
to align to these trends? As Goldilocks celebrates its 50th year this year, how will the company
keep up with the rise of fiercer competition?

DECISION ANALYSIS
 As the needs and wants of the market changes over time, the company needs to look at
the currents trends in the industry, what the buying power of the customers and what
spending pattern are being practiced by the bigger population.
 They need to study the existing needs and priorities that come on top of the list so they
company may level their products on the following demand.
 They are to identify what generation contributes great income to their company and what
influences their spending decisions.
 Goldilocks should work back on what kept the “there” for the past 50 years and continue
the strategies, this time bigger and better.
EVALUATION OF ALTERNATIVES
 Expansion to more international countries will make a big hit and give them a bigger
brand name to be identified worldwide.
 Continue selling the same products while innovating these old products with varieties
such as flavor, size, packaging and promos.
 Keep up with the competition by concentrating on the biggest number of the population,
the millennial. Look into their interest and study what captures their attention.

Feasibility of Decision
Goldilocks have existed for the longest time and is celebrating its 50 th year. It shows how efficient
the company has been achieving their short-term and long-term goals. A timeline in review below
will give us an over view on their milestone and expansion. Every year they are better at
expanding withholding the same values they are have started.

1966
On a cheerful day in May, the first Goldilocks branch opens in Pasong Tamo, Makati. This "Once
Upon a Time" will flourish into a "Happy Ever After" in due course.

1968
Goldilocks marches along and opens its second branch along Taft Avenue, Manila.

1969
Parties and celebrations become more delightful, as Goldilocks extends to catering services

1976
United States, here we come! Goldilocks plants the Philippine Flag overseas by opening an outlet
in Los Angeles, California.
1981
As the country celebrates the beatification of its first Saint, San Lorenzo Ruiz, Goldilocks is
tapped as the official caterer for the visiting Pope John Paul II.

1984
Goldilocks continues its international expansion by opening in Vancouver, Canada.

1991
The Goldilocks family gets bigger through its franchising program. Great news for entrepreneurs!

1994
Goldilocks puts happy faces in their cakes - quite literally - as it introduces the trend in
computerized edible portrait cakes.

1995
Di a nami sa Sugbu! Goldilocks launches its Cebu commissary to better serve the southern
market. Padayon ang Lami!

1996
The once-small bakeshop comes of age: Goldilocks exceeds 1 billion pesos in revenue.
1999
Here's to a happy hundred! Goldilocks opens its 100th store.

2001
New look, same goodness: Goldilocks updates its store design and visual elements.

2002
Didto sa Davao, na ay Goldilocks na! Beginning in Luzon and extending to the Visayas,
Goldilocks now reaches Mindanao.

2003
Another reason to visit the "vacation capital of the Philippines": Goldilocks opens in Baguio City.

2004
Viva Las Vegas! The USA now has 17 Goldilocks stores across key cities.

2006
Goldilocks celebrates 40 Thoughtful Years in the Philippines. Accordingly, the country's number
one bakeshop reaches 5 billion pesos in sales and opens its 200th store.

2007
Come and see how Goldi-good things are made! The Goldilocks Cake City Tour opens its doors,
to the delight of kids and kids at heart.

2009
Mother Earth joins the celebration: Goldilocks is recognized for its environmental activism and
eco-friendly production systems.

2010
Goldilocks says Sawadee! The Company's Asia expansion begins with its first store in Bangkok,
Thailand. Goldilocks opens its 300th store in Quezon City.

2011
Goldilocks celebrates its 45th year aniversary.
2012
Goldilocks rebrands, updating its identity elements and strengthening its legacy.
2013
Seven years after opening its 200th store, Goldilocks doubles the number and opens its 400th

2014
At the wedding of Dingdong Dantes and Marian Rivera, Goldilocks unveils a 3D-mapped, 12-foot,
5-tiered cake adorned with Swarovski  crystals and butterfly details.

2015
Cebu inaugurates its new plant to better serve our Cebuano customers

2016
Goldilocks celebrates 50 Sweet and Delightful years of bringing world-class products to Filipinos
all over the world.

Goldilocks has always been know by Filipinos not only as a brand, but an institution. Its famous
taglines, "How thoughtful, how Goldilocks" has evolved over the years into "How thoughtful, how
Pinoy", and later to "Ang sarap magmahal ng Pinoy!", embracing a culture and tradition that goes
beyond the name.

They continue to adapt the principle of "thinking global, strategizing regional, and acting local", it
maintains the exact homegrown goodness of its products in overseas markets, but attempts to
acquaint multicultural tastes with its menu items as well.

As a result, the international market continues to strengthen. From one branch in Los Angeles,
California in 1976, Goldilocks has expanded to other key cities in the United States such as San
Francisco, Las Vegas, Sacramento, and San Diego, for a total of 22 U.S stores.

Three years ago, Goldilocks has opened 6 stores in Thailand. Goldilocks has also tapped
markets in several other Southeast Asian countries such as Singapore, and Hong Kong.
Moreover, it has received a considerable number of requests to open in the Middle East, mostly
from Overseas Filipino Workers and expatriates. 

Impact to Costs and Revenue

Being the leading Quick Service Restaurant in the Filipino Food Category, the company has
expanded to more than 350 stores in the Philippines, with nine manufacturing plants strategically
located across the country. The opening day total sales of P574 back in 1966 has multiplied
thousands of times over, reaching system-wide sales of over P6 billion as of latest financial
records. Allotment of cost would move towards to a more aggressive marketing style that will
target a generation that will last for another decade or more.

Long-term Benefits

Economies of Scale

When Goldilocks expand, they typically come closer to achieving economies of scale. Economies
of scale dictate that as the volume of a company's production increases, its cost to produce items
reaches its most efficient point.
Customer Base

Expanding Goldilocks will widen their customer base. When they operate in one business
location, the number of potential customers served is limited by that location and product.
Brand Recognition

Business expansion will lead to increased brand recognition with potential customers. Brand
recognition is a group's ability to recognize the product and its features even they have not tried
the product. Typically, businesses rely on advertising to increase brand recognition; however,
when a company expands its business, the increased market saturation via locations or product
volume exposes customers to the product frequently.
Expanding the business will increase the ability to turn larger profits in the long term. Initially, the
expansion requires capital purchases and loans that consume resources in the short term.
However, the added production ability or location increases long-term cash flow. Considering the
market performance of Goldilocks as show in their milestone, they are effective in their expansion
and a bigger expansion will continue to do more for their business.

CHOSEN DECISION/STRATEGY
Expansion to more international countries will make a big hit and give them a bigger brand name
to be identified worldwide.

Goldilocks should work back on what kept the “there” for the past 50 years and continue the
strategies, this time bigger and better.

IMPLEMENTATION PLAN & FUTURE RISK ANALYSIS

Timeline
Month 1: Identifying the goal of the firm
Profound understanding of the competitive environment of Goldilocks
Month 2: Collect Project Ideas
Identification of strategies and resources
Month 3: Gather Business Requirements
Month 4: Identify Executive Project Sponsor
Month 5: Get the Project Team in place
Month 6: Prepare Project Charter
Month 7: Conduct Kickoff Meeting
Month 8: Effective implementation of the strategy

Predicted timeline could take a year for the full blow expansion and implementation of the said
strategies.

Action Plan and Action Owner

Identify the goals:

1. Increase your sales and products in existing markets. 

2. Introduce a New Product. 
3. Develop a New Market Segment or Move into New Geography. 
6. Join Forces / Strategic Alliance. 
7. Go Global. 

Form a business expansion specialist team that focuses on strengthening their client's brand,
increasing staff accountability, and inspiring life leadership from management. They will be
committed in ensuring the continual growth of his clients, both in business and life. It will be
composed of 20-30 members.

1. Create a revenue plan

2. Map your gap
3. Know your customer
4. Document how your prospects/customers think and behave
5. Create a unique positioning in your market
6. Know what sets you apart
7. Take action
8. Success starts with the belief that it’s possible
9. Determine which distribution channels you will use for your business
10. Select the right strategies
11. Create a 90 day sales and marketing schedule

Future Risks
 Changing needs and wants
 Rise of competition
 Competition has a new innovated product or service
 Global markets
 Duplication

CONCLUSION / RECOMMENDATIONS

In the business culture, Goldilocks lives by the belief of “higher the investment, the
higher the return.” Through the years they have been spending serious money
in upgrade and expansion of its operations up to the point of penetrating more
distinguishing demographics. If we base on the company’s performance and
market acceptance, this is definitely money well spent. At present, Goldilocks
has over 300 stores in the Philippines, as well as 21 stores in North America,
and a new branch in Bangkok, Thailand.

A consideration is Niché marketing – the process of promoting a product,

service, or customer experience specifically designed to focus on a certain
demographic has taken the forefront in an increasingly customer-centric
consumer landscape. With good reason, too: concentrating on one purchase
group streamlines the entire operation, with the promise of repeat sales.

This concept has proven to be a big asset for luxury brands, but for brands
that would like to have a broader scope, using niché marketing as a part of an
expansion is a novel idea. Instead of creating just one brand to focus on a
defined set of consumers, Goldilocks is can look at making it two. One to
serve the more upscale market, and another to accommodate the more
prudent, yet equally tasteful, masses.

If there is one thing Goldilocks is very proud of, they stuck to its roots and yet
branched out, going for a piece in another pie. With my current substance, I
am confident that continuous expansion and a focus on their strengths would
make them still in the market years after years.
APPENDIX & REFERENCES
Goldilocks uploaded by Froland M. Tajale 
https://www.scribd.com/doc/36681225/Goldilocks

Goldilocks Bakeshop Inc. by Philippine Association of National Advertisers

http://pana.com.ph/directories/goldilocks-bakeshop-inc/

The elegant expansion of Goldilocks, November 21, 2010 by Philippine Star

http://www.philstar.com/business-usual/631857/elegant-expansion-goldilocks

CNN cites Goldilocks bakeshop founders among world's 'Trailblazer Female CEOs, August 15,
2013 by Xianne Arcangel, VVP, GMA News
http://www.gmanetwork.com/news/story/322171/news/pinoyabroad/cnn-cites-goldilocks-
bakeshop-founders-among-world-s-trailblazer-female-ceos#sthash.j7TTbv2s.dpuf

https://business.inquirer.net/179408/goldilocks-and-the-selling-power-of-a-compelling-value-
proposition

https://padala.goldilocks.com.ph/blog/global-expansion
https://smartsellingtools.com/goldilocks-principle-for-sales/