I.

SITUATIONAL ANALYSIS

A. SWOT/TOWS ANALYSIS

Strengths

Gardenia bread is a top-bread maker and a well-known brand in the bread industry. The company is

recognized as the most outstanding bread manufacturing in the product category by the consumer Urion

of the Philippines (CUP) held yearly during its Annual National Consumer Award (ANCA). Gardenia,

being a consumer-focused and branded food company, is singularly driven in delivering superior

consumer value through providing consumers with superior products. The Gardenia trademark means

value and is respected all over Asia.

Gardenia Philippines pioneers a unique distribution system, ensuring only fresh breads reach

consumers every day. Gardenia strictly follows its international policy of keeping only fresh stocks on

the store shelves.

The combination of superior product quality, advanced bread-making technology, and extensive system

of distribution reflects the consumer-oriented vision of Gardenia Philippines that brings consumers the

highest level of product satisfaction. Its better marketing skills and ability to make rapid expansion,

contribute a lot to Gardenia’s success which is evident with its continuous and rapid sales growth.

Weaknesses

Gardenia uses price skimming strategy which targets Class B and C with ₱15,000 and above income

which results to limited availability to lower-end market. Gardenia distributes only its products to

wholesalers/retailers but has no stand-alone stores to sell its own products. Gardenia also lacks online

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services for its customers’ convenience. In terms of profitability, Gardenia is doing well but not that

much because bread sector is not a highly profitable sector.

Opportunities

Gardenia is continuously expanding and striving to maximize the opportunities such as rapid market

growth, changing customer needs/preferences, economic boom/downturn, new technology, sales

decline for substitute products, and evolving business models in the industry to remain competitive and

meet the needs/preferences of its customers. New technology will help Gardenia produce more fresh

and high quality products to offer to its several customers. Different social media sites will also help

Gardenia reach and serve other customers easily and conveniently.

Threats

Economic boom/downturn, bargaining power of buyers/suppliers, changing customer needs/tastes, new

technology, increase in government regulation, and introduction of new substitute products are some of

the threats that might affect the market demand and sales of Gardenia if not monitored and controlled

properly. Affordability among Filipino customers is also one of the threats faced by Gardenia because

they cannot price its products in the Philippines as they should be. Different economic issues and

government malpractices could affect Gardenia’s operations and strategies and could make the business

uncompetitive. Even a small change can affect the position of the brand.

TOWS ANALYSIS

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External Opportunities External Threats
(O) (T)
1. Rapid market growth 1. Economic
2. Changing customer boom/downturn
needs/tastes 2. Bargaining power of
3. Economic buyers/suppliers
boom/downturn 3. Changing customer
4. New technology needs/tastes
5. Sales decline for 4. New technology
substitute products 5. Increasing government
6. Evolving business regulation
models in the industry 6. Introduction of new
substitute products

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 Internal Strengths
(S)
1. Well-known brand
image
2. Superior quality
products
3. Better marketing skills
4. Growing product line
5. Wide coverage and
distribution
6. Ability to make rapid
expansion
7. Supply power
Internal Weaknesses
(W)
1. Limited
availability/penetration
to lower-end market
2. No stand-alone stores
3. Online services
SO ST
 Strengthen brand  Continue producing
image through better innovative, distinctive,
marketing skills and and high quality
promotional tools products to retain loyal
 Maximize the use of customers and gain
technology for better new potential
performance towards customers
producing quality and  Develop marketing
health conscious skills and promotional
products to retain loyal tools to attract new
customers and gain customers and increase
potential customers sales
 Continue developing  Empower brand name
advertisements and through advertisements
other marketing in making quality and
programs/activities to health conscious
promote new products products to overcome
and attract target threats
market  Adapt to policy,
 Enhance product line technological and
to increase market other changes to
share continue providing
quality
products/services
WO WT
 Look for suppliers  Innovate products to
offering cheaper yet overcome threat of
quality raw material to customer changing
produce affordable needs/tastes and other
products that will cater threats
the lower-end market  Produce affordable yet
 Adopt new technology quality products that
to provide online will cater the lower-
services and create end market
online promotions that  Establish stand-alone
will strengthen its stores to expand
brand image and gain business and offer
potential market more products to
 Expand business by increase market share
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 building stand-alone
stores to offer new
products and other
services to cater more
customers
and attract more
customers/investors
 Maximize the use of
websites and social
media sites to promote
products and create
buzz online
 Provide online services
for convenience and
easy access to products
and product info.

B. PEST ANALYSIS

Political/Legal Factors

Government rules and regulations affect Gardenia’s operation because of it has to cope with the

changes imposed by the Government. These rules will help Gardenia improve its business operation

but also it could have negative impact on it since the government has control over the products and its

price. Gardenia is expected to comply with the requirements ordered by the government.

Taxation policy affects the production costs of Gardenia. The price of Gardenia breads depends on the

price of its raw materials and higher taxes on these raw materials indicates an increase in price in

production costs of Gardenia which is also an indication of an increase in the price of Gardenia

products.

Economic Factors

Key economic indicators include interest rates, gross domestic, retail price index, unemployment rates

and exchange rates. Philippines provide a growing market for premium food product. Economy growth,

and especially employment in services sector jobs, is driving demand for more convenient and prepared

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foods. Gardenia believes that the Gardenia’s success is brought regarding by the dedication and

commitment of each member of the Gardenia family. These dedications are leading Gardenia to be the

no1 in bread industry. During global economic crisis, the industry had a flat growth but Gardenia

continue to grow by two to four percent. Gardenia should continue encouraging and providing more

opportunities for employment while making Gardenia bread more widely available conveniently to

customer.

Due to changes in economic factors such as increase in interest rates could affect demand of customer

for Gardenia products and this could be an opportunity for the substitute products which might have

negative impact on Gardenia’s operation and profit.

Socio-Cultural Factors

Rapid growth of population in the Philippines is an indication of growth of potential customers of

Gardenia which could increase the demand for its products.

Socio-cultural forces will affect the values, beliefs, and lifestyles of a society. Over the past few years,

rising levels of obesity, heart disease, and diabetes in the Philippines have rapidly increased consumer

interest in healthy and nutritionally food and government interest in promoting healthier eating and

lifestyles. Breakfast is important for people for having healthier. According to the Philippine

Association of Flour Millers Inc. (PAMFIL) said that 85 percent of Filipinos’ prefer to eat bread instead

of rice for their breakfast. Consumers are willing to pay anything that will make healthy and fit.

Technological Factors

Developments in technology lead to new products and services and improve how they are produced

and delivered to the end user. As the top-bread maker and leader of bread manufacturing industry,

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Gardenia using state-of-the-art-bread manufacturing plant is capable making 6000 loaves of bread per

hour or nearly 150000 loaves per day. It is the equipment whereby almost untouched by human hands.

Therefore, it ensures providing safe and best quality of bread product. New baking tools and

equipments will help enhance/speed up Gardenia’s production.

The development of internet is an opportunity for Gardenia to promote its products online and enhance

its brand image. Gardenia could enhance its website and maximize the use of social media to offer

online services and reach new potential market. This will help Gardenia increase its market share and

influence customer purchasing decisions.

C. INDUSTRY ANALYSIS

Threat of New Entrants (Medium Pressure)

In these high competitive industry, there are a lot possibility that new competitor enter to the industry.

Indirectly, new entrants to industry will lead threat that might decreasing level of customer loyalty and

will be highly competition in between. Capital requirement for investment in bread industry in

purchasing those raw material and machinery before the entrant could begin selling the product. In

additional, certain market share need to be capture for the new entrant before it could reap the

necessary economies of scales to allow it with rival firm.

Gardenia produces affordable products and enjoys the economies of scales to compete effectively.

Gardenias enjoy fairly high product differentiation whereby retailers prefer of brand recognition and

customer loyalty. Therefore, it results harder for new entrants to enter the market.

Bargaining Power of Buyers (Low Pressure)

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Individual customer does not influence much to bakery industry. Gardenia main buyers are like

hypermarket and retailers which pay lots for every year. Therefore, bargaining power is low due to a

lots distributor getting resources (bread product) from Gardenia and selling it to end-user. The product

for Gardenia is differentiated base on the quality.

Buyers are not easy to always find alternative suppliers. In relation to buyer power in Gardenia industry

seeks to enhance customer loyalty in focusing existing relationships and trying maintaining in long-

term relationships with buyers.

Bargaining Power of Suppliers (Medium to High Pressure)

Suppliers of Gardenia have a great bargaining power especially for those monopoly products. For

example, flour is the main raw material in producing bread. There are few substitutes to their product.

Threat of Substitute Products (High Pressure)

The threat of substitute for Gardenia product is high within the industry. Consumer is looking for bread

with attracting topping and decoration. For example, those bakery shop usually providing filling bread

and attractiveness bread which meet the expectation of customer. Other industry such as fast food also

providing breakfast value which meal serve with bread. It becomes a threat to Gardenia.

Current Category Rivalry (Medium to High Pressure)

Gardenia’s operates in a highly competitive industry. Some of the competitor are by low priced

confectionery producers which are small family-run businesses whereby producing bread that are sold

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in the neighborhood which called small-scale production for the local market. On the other hand, a few

large competitors such as Golden Donuts, Inc or Red Ribbon Bake Shop, Inc also produce affordable

products.

Baking of bread, cakes, pastries, pie and similar “perishable” bakery products

D. MARKET ANALYSIS
a. Market Size

Philippines market in Baked Goods industry is growing fast by this time. Filipino market who

consumes baked goods products such as pastry, cakes, breads and cereals. Market of Baked goods

industry reached 48% share of total sales as of 2013 and expected to reach higher on 2015. There is a

big part of new potential market that is health conscious and can account a lot of share in the sales of

the baked goods since the trend in the industry is healthier products to come out.

b. Market Growth Rate

In 2013, Philippines’ strong performance in economy helped the Baked Goods industry to work

well. Due to fact that Filipinos are starting to consume breads, pastries and cakes more frequently. The

market for the baked goods and cereals industry in Philippines increased at aggregate annual growth of

3.4 %.

Baked goods industry is dominated by small bakeries which bake and sell their products on-site. In

2013, it is expected that unpackaged/artisanal offerings will account for a 48% share of total sales in

baked goods. Amongst packaged/industrial players, Gardenia Philippines is expected to see the biggest

revenue contribution. The company share is expected to reach 11% in 2013. Gardenia Philippines
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banks on its reputation as a manufacturer of freshly baked bread which is delivered to retailers daily. In

recent years the company expanded its product line to include pastries, high fiber bread and healthier

alternatives.

c. Market Profitability
• Buyer Power - This has a lot of effect on the profitability of Gardenia since they have loyal

buyers and alliances that make their profit higher.

• Supplier power – Supply for the products are bound to be attainable since it is available

nationwide and they have extensive mass distribution of the products.

• Barriers to entry - The profitability in this force can affect the market and its industry since

switching costs in the market are likely to happen in Philippines economy.

• Threat of substitute products – Implications in this force is low because of the fact that Gardenia

has strong brand image and large amount of market. They can still get higher market profitability.
• Rivalry among firms in the industry – Rivalry can affect the profitability of the company but

since Gardenia top the market share for the past few years, their profitability in this force are much

unlikely to step down.

d. Industry Cost Structure

Firm Infrastructure: Market strategy, market policy, organizational structure, company culture
Human resource management: staff’s training and development, market research, hiring,

compensation
Technology Department: transaction processing system, production unit database, sales
Procurement: purchasing raw materials, supplies, equipment

e. Distribution channels

Gardenia Philippines pioneered a unique distribution system, ensuring that only fresh breads

will reach consumers every day. It strictly follows its international policy of keeping only fresh stocks

on the store shelves. Delivery vans leave the production plant as early as 4 o’clock in the morning to

distribute the products in specific locations nationwide as soon as it is produce from the factory.

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Gardenia Philippines always replace unsold breads with their freshly baked premium quality breads

and other products.

Gardenia conducts extensive mass distribution of their product through Retail Stores,

Supermarkets, direct selling and grocery stores. Sponsorship in events helps the company to distribute

and promote their product by this new channel. Products of Gardenia are mostly available nationwide,

because of its availability in the channel power.

f. Market Trends

Product Quality - The preference for high-quality product of Market is increasing in light of the fact

that they appreciate the qualitative differences.

Health Consciousness – People nowadays want to live in healthy way, seems everyone is getting fit and

healthy, these are potential market and they are growing.

Appearance – Market who consumes bread and wheat products are tend to look for more appealing

products than the usual.

Selection - People are demanding a larger variety of breads. They don’t look for common breads,

pastry, cakes nowadays.

g. Key Success Factors

Gardenia provides premium quality products that give satisfaction to their customers. Since Gardenia

Bakeries established their brand image through the years it is one of the key success factors that they

have.

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Technologies nowadays, tapped industries along the lines of computer, phone and other gadgets, having

advance bread-making technology of Gardenia, it made as their edge to the other competitors.

Gardenia has extensive system of distribution to the country, they have pedicarts, pushcarts and now

they are available to supermarkets, sari-sari store and every so often they are also conducting school to

school programs that help them to be efficient to the consumers.

Gardenia being an established company their key success factor would be the strong financial position

in the industry that makes them more in demand.

E. CUSTOMER ANALYSIS

The Gardenia Bakeries Philippines Inc. exists to satisfy the consumers’ needs. They are able to

provide breads for many different target markets including, people of all ages, sexes, races, etc.

Gardenia products are able to sell to a diverse worldwide population.

MARKET SEGMENTATION

Gardenia is certainly for everybody-whether you are a student, working professional, young, young-at-

heart, dieters, nutrition-seeking families, health conscious and On-The-Go.

DEMOGRAPHIC SEGMENTATION

 Social Class Gardenia products are purchased by all the different classes, but mainly by the

middle and upper class citizens.

Freshly baked products at a reasonable and justifiable price is what Gardenia strives to provide for their

customers. A comfortable and convenient atmosphere provides a place where the customer can free

themselves from buying the products.

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Gardenia have supply the bread to all the convenience shop, hospital, school, supermarket, provision

store and hypermarket. Due to the increase in demand of bread, Gardenia has to start to increase the

supply of bread to the market.

Gardenia focused on meeting the expectations of its target consumers. These are:

First, freshness. Everyone likes to eat bread that’s just come out of the oven. Gardenia responded to

this need with the G-lock as assurance for freshness. The g-lock is a small but durable resalable clip

used to seal in the bread’s freshness. There is seven G-lock colors assigned for the seven days of the

week, making it easier in pulling out unsold breads every day of delivery, and to make sure that only

newly baked breads are displayed on store shelves. Gardenia’s unique G-lock system keeps consumers

informed of the date the bread is baked for, the suggested retail price, the production line the bread was

produced, and batch number.

Second is taste. The local term for loaf bread is “tasty.” In the case of Gardenia, to differentiate the

promise of taste, it claimed “masarap kahit walang palaman.” Gardenia uses only the finest ingredients

from all over the world.

Next is aroma. Filipinos believe that food must smell good to taste good. Inaamoy muna bago

kinakagat. The natural freshness and enticing smell of Gardenia breads stand out among other brands.

Fourth is softness. They also prefer soft breads, because for them, softness means freshness. For them,

the bread is old if it is not soft. It is a common observation that when buyers approach the bread

shelves, they pinch and squeeze the bread. And did you ever notice that Gardenia loaf slices can be

rolled without breaking? Try this out!

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Nutritive Value. And of course, eating’s purpose is primarily for nourishment and nutrition. The

nutrients most of us need are Vitamin A, Iodine, and Folate. Gardenia breads are fortified with essential

vitamins and minerals that make it really nutritious.

MARKET NEEDS

Gardenia Bakeries Philippines Inc. offers the following benefits to its customers Nutrition,

Accessibility, Convenience, Customer Service, Atmosphere and Selection

MARKET TRENDS

Every consumer has different needs and wants, so Gardenia supplies many variety of bread in order to

meet the demand of the consumer in order to satisfy them. Demand is a principle that the consumer

willing to pay for the price and also desire to buy the goods and services.

Consumers are very delicate when it comes to the food purchasing. Especially in the Philippines, they

want their breads to be fresh in the oven. Knowing this, Gardenia Bakeries Philippines Inc. thought of

how to ensure their market in the country whenever purchasing their product.

SURVEY RESULTS:

Table 1. Demographic profile of the respondents according to their age:

AGE FREQUENCY PERCENT

12-20 15 48%
20-30 10 32%
30-40 0 0%
40-50 6 19%
50 and up 0 0%
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 TOTAL 31 100%

Table 1 (See Appendix for chart presentation)

The researchers conclude that most of the respondents are students and belongs to Gen Y.

Table 2. Demographic profile of the respondents according to their location:

AGE FREQUENCY PERCENT

Laguna 1 .04%
Imus 6 22%
Las Piñas 7 26%
Cavite 2 .07%
Muntinlupa 1 .04%
Silang 1 .04%
Dasmariñas 3 11%
Bacoor 4 15%
Makati 1 .04%
Manila 1 .04%
TOTAL 27 100%

Table 2 (See Appendix for chart presentation)

The researchers conclude that most of the respondents are from Las Piñas City.

Table 3. Do you eat bread?

AGE FREQUENCY PERCENT

Yes 31 100%
No 0 0%
TOTAL 31 100%

Table 3 (See Appendix for chart presentation)

The researchers conclude that all of the respondents eat bread.

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Table 4. If you don’t eat bread, do you buy bread for your family?

AGE FREQUENCY PERCENT

Yes 23 100%
No 8 0%
TOTAL 31 100%

Table 4 (See Appendix for chart presentation)

The researchers conclude that most of the respondents buy bread for their family.

Table 5. How often do you eat bread?

AGE FREQUENCY PERCENT

Once a day 15 48%
Twice a day 4 13%
Once a week 9 29%
Others (every other day, 3 10%

most of the times in a

week

pag may tinapay lang or

trip mag burger

TOTAL 31 100%

Table 4 (See Appendix for chart presentation)

The researchers conclude that most of the respondents consume bread once a day.

Table 6. Which meal of the day do you consume bread?

AGE FREQUENCY PERCENT

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 Breakfast 26 49%
Lunch 0 0%
Snacks 23 43%
Dinner 4 %
Others (every other day, 0 0%

most of the times in a

week

pag may tinapay lang or

trip mag burger

TOTAL 53 100%

Table 5 (See Appendix for chart presentation)

The researchers conclude that most of the respondents consume bread during Breakfast.

Table 7. Have you tried Gardenia before?

AGE FREQUENCY PERCENT

Yes 31 100%
No 0 0%
TOTAL 31 100%

Table 7 (See Appendix for chart presentation)

The researchers conclude that most of the respondents prefer Gardenia bread.

Table 8. Where do you usually buy bread from?

AGE FREQUENCY PERCENT

Supermarket 28 84%
Sari-Sari Store 3 10%

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 Convenience Store 4 13%
Bakeries 7 23%
Drug Stores 1 3%
Others 1 3%
TOTAL 31 100%

Table 8 (See Appendix for chart presentation)

The researchers conclude that most of the respondents buy breads Supermarket.

Table 9. Why do you choose bread from there?

AGE FREQUENCY PERCENT

Quality Services 18 58%
Convenience Locations 19 61%
Publicity of the Store 2 6%
Membership Rebates 1 3%
Others 1 3%
TOTAL 41 100%

Table 9 (See Appendix for chart presentation)

The researchers conclude that most of the respondents buy breads Supermarket because of

Convenience and Quality Service.

Table 10. What are the criteria(s) you look for when choosing the brand of bread to eat?

AGE FREQUENCY PERCENT

Softness 21 68%
Freshness 28 90%
Availability 8 26%
Nutrition 14 45%
Price 14 45%

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 Packaging 9 29%
Flavors 8 26%
Others 0 0%
TOTAL 41 100%

Table 10 (See Appendix for chart presentation)

The researchers conclude that the top 3 qualities that consumers consider in choosing bread to

eat are softness, freshness and nutrition and price.

Table 11. Which new forms of packaging would you prefer?

AGE FREQUENCY PERCENT

Box-form (Travel-pack, 5 16%
Picnic-pack, etc)
Ziplock 16 52%
Mini Size Sandwich 2 6%
I don’t want to change the 11 35%

packaging
Others 0 0%
TOTAL 41 100%

Table 11 (See Appendix for chart presentation)

The researchers conclude that most of the respondents prefer Zip Lock as the new packaging for

Gardenia Breads.

Table 12. Which type did you try before?

AGE FREQUENCY PERCENT

White Bread (Classic 27 87%
White Bread Regular and
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 Thick Slice, Health Bread
(High Fiber Whole Wheat
Bread, High Fiber Wheat
Raisin Loaf and Slim n Fit
Wheaten Bread), Snack
Items (Twiggies Yellow
Cake, Cream Roll, Fun
Bun, Muffin)
Health Bread (High Fiber 18 58%
Whole Wheat Bread, High
Fiber Wheat Raisin Loaf
and Slim n Fit Wheaten
Bread)
Pandesal and Buns 14 45%
(Premium Pandesal, Soft-
delight pandesal, Whole
wheat pandesal, Hotdog
Bun, Hamburger Bun)
Snack Items (Twiggies 13 42%
Yellow Cake, Cream Roll,
Fun Bun, Muffin)
Crunchy-licious Toasts 11 35%
(Butter Toast, Garlic
Toast, Cinnamon Toast)
Others 0 0%
TOTAL 83 100%

Table 12 (See Appendix for chart presentation)

The researchers conclude that most of the respondents prefer have tried White Bread (Classic

White Bread Regular and Thick Slice, Health Bread (High Fiber Whole Wheat Bread, High Fiber

Wheat Raisin Loaf and Slim n Fit Wheaten Bread), Snack Items (Twiggies Yellow Cake, Cream Roll,

Fun Bun, Muffin) products of Gardenia Breads.

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Table 13. If Gardenia Bakeries would add products on their product line, what products you think

would be appealing to the consumers?

AGE FREQUENCY PERCENT

Gardenia Spreads 12 39%
Gardenia Jam and 7 23%
Marmalade
Gardenia Cream Filled 4 13%
Biscuits
Gardenia Mamon and 19 61%
Ensaymada
Gardenia Filipino Biscuit 5 16%
Gardenia-To-Go (Ready 9 29%
to eat sandwich)
Gardenia Hot Drinks 4 13%
Others 0 0%
TOTAL 60 100%

Table 13 (See Appendix for chart presentation)

The researchers conclude that most of the respondents prefer “Gardenia Mamon and

Ensaymada” to be part of the new products for Gardenia Breads.

Table 14. If Gardenia Bakeries would launch the "Gardenia Spreads", what flavors would you consider

buying?

AGE FREQUENCY PERCENT

Tuna Spread 15 48%
Choco Spread 14 45%
Chicken Spread 12 39%
Ham Spread 6 19%
Peanut Butter Spread 12 39%
Others 2 6%
TOTAL 61 100%

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 Table 14 (See Appendix for chart presentation)

The researchers conclude that most of the respondents prefer Tuna flavoured spread.

Table 15. If Gardenia Bakeries would launch the "Gardenia Jams and Marmalade", what flavors would

you consider buying?

AGE FREQUENCY PERCENT

Mango 11 35%
Strawberry 17 55%
Orange 1 3%
Pineapple 5 16%
Coconut 6 19%
Blueberry 12 39%
Others 1 3%
TOTAL 61 100%

Table 15 (See Appendix for chart presentation)

The researchers conclude that most of the respondents prefer Strawberry flavoured Jam and

Marmalade.

Table 16. If Gardenia Bakeries would launch the "Gardenia-to-go" (Ready to eat sandwiches), what

flavors would you consider buying?

AGE FREQUENCY PERCENT

Ham and Cheese 19 61%
Sandwich
Chicken Sandwich 13 42%
Bacon and Egg Sandwich 18 58%
TLC Sandwich 13 42%
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 Tuna 13 42%
Others 0 0%
TOTAL 76 100%

Table 16 (See Appendix for chart presentation)

The researchers conclude that most of the respondents prefer Ham and Cheese flavoured

Sandwich.

Table 17. Overall, are you satisfied from the products of Gardenia Bakeries?

AGE FREQUENCY PERCENT

Strongly Agree 16 52%
Agree 13 42%
Neutral 2 6%
Disagree 0 0%
Strongly Disagree 0 0%
TOTAL 76 100%

Table 16 (See Appendix for chart presentation)

The researchers conclude that most of the respondents prefer Ham and Cheese flavoured

Sandwich.

Table 17. Monthly Income

AGE FREQUENCY PERCENT

below P 5,000 15 48%
P 5001 - P 15,000 5 16%
P 15, 001- P 25,000 5 16%
P 25,001- P 35,000 5 3%
P 35, 001- P 50, 000 1 10%
P 50, 001- P 100, 000 1 3%
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 P 100, 000 and up 1 3%
TOTAL 33 100%

Table 17 (See Appendix for chart presentation)

The researchers conclude that most of the respondents prefer Ham and Cheese flavoured

Sandwich.

E. COMPETITOR ANALYSIS

a. Competitor Profile

COMPANY COMPANY PROFILE MISSION AND VISION

Established in 1985, Mister Pullman began as a

MISTER provider of fresh, high-quality bakery products
PULLMAN at affordable prices in the Metro Manila area.
With initial manufacturing facilities and a small
work force, it expanded its business through the
installation of state-of-the-art machinery and
systems from the best bakery equipment
suppliers from Japan, North America, China,
and Taiwan making its plant a technology-driven
production site aimed at leading continuous
improvement. Consequently, it continues to
satisfy customer needs by providing quality
goods and excellent service. Information Not Available

Today, Mister Pullman has become one of the

leading brands of bread and pastries in the
country and is now available in thousands of
supermarkets and bakeries. Its daily production
has exceeded 10 tons of flour. Mister Pullman
offers a wide range of superior bakery products
including its classic white bread, customer-loved
mongo bread, butter loaf, cheese bread, and
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 tasty pastries like mammon, ensaymada, cup
cake, brownies, hopia, and many more. Mister
Pullman breads are known for their good taste,
freshness, softness, oven-baked aroma and
reasonable prices. Many of its products are
cholesterol free and bromate free, have zero
transfat, and are vitamin fortified, which are a
good part of a healthy diet. Its product slogan
"Cant forget the great taste" best describes the
product benefits. As a result of the greatness of
its products, the company has won the National
Shoppers Choice Award and the Philippine
Marketing Excellence Award for three
consecutive years.

Established 1976, Marby Food Ventures, a From the company's

MARBY Filipino owned company and among the
FOOD pioneers of the trade, carries various baked
VENTURES products viewed as the benchmark of quality by
the bakery industry. Since its inception in the
70's, Marby's bakery products have been a
household name, providing each family with
bread and pastries that are highly affordable and
available. Its increasing demand prompted the
company to make the product accessible to its
market through widespread distribution and
unique selling techniques.
At a time when breads were sold in the bakery
and sari-sari stores (Filipino small scale
convenience stores) along residential areas,
Marby proprietors decided to come up with a
modern and more flexible marketing strategy-
delivery service. Long before this innovative
system became popular, Marby started its own
delivery scheme that reached consumers
regardless of proximity. With its effective
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25
conception, Marby Food
Ventures has embarked on a
mission of providing
unparalleled service. With its
slogan "Quality Baking
Traditions", motivated by its
quest for excellence, Marby has
pledged to carry on its tradition
of ensuring utmost satisfaction
through continuous guiding
principles of improvement and
dynamism to build trust and
confidence with its valuable
clientele.
As the 3rd millennium goes
full swing, Marby Food
Ventures envisions to be the
largest manufacturer and
distributor of high quality
baked products, as well as
 distribution system, Marby was catapulted to
being one of the industry's leading
manufacturers and distributors in the market.
And in no time, Marby became a household
name. From a small proprietorship, it has grown
into one of the leading bread manufacturing
companies in the Philippines.To ensure its
customers of continuous product innovations,
Marby has been in partnership with several
market research firms to recognize the behaviors
of consumers and today's trends.
Today and for many years, Marby holds the over
all market leadership in baked product
manufacturing and distribution serving more
than 2000 outlets in GMA and Luzon.
Consequently, by virtue of its daily output,
Marby is considered as one of the major
consumers of bakery ingredients. Its overall
production comes from a massive manufacturing
plant in Bulacan, operating 24 hours daily to
produce over a hundred varieties of bread,
pastries and biscuits that Marby is currently
known for.
Galactica Food Corporation has been in the
GALACTICA bakery business for 34 years now. Since it’s
FOOD establishment in 1979, the owner Mr. Lam A.
CORP. (PAN- Santos has set a goal of serving the Filipino
A-CUP) people with baked goods that are reasonably
proced but exceptionally high in quality and in
taste.
Though Mr. Lam is a Half Filipino and Half
Chinese in Blood, he being born here in the
Philippines, already gave him the edge on what
the Filipino Taste buds would prefer in terms of
baked goods.
Pan A Cup, our brand name was first known for
the primary product the “Pullman bread”. The
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providing a vast range of food
products for the retail market.
Its high rate of production will
be backed by sophisticated,
high-technology bakery
machines, skilled manpower,
an efficient distribution system,
and facilities which will ensure
the quickest and easiest access
to even the most remote region
of the country and the rest of
the global market.
This Filipino owned
corporation hopes to maintain
the high quality and goodness
of its low-processed baked
products that its loyal
customers have enjoyed.
Through the years, Pan-A-Cup
bakeshop firmly believes it’s
customers deserve only the best
and we will continue to exist
under the principle of pur logo
“Basta Pan-A-Cup masarap”.
 bread has a very distinct taste, which to our
opinion still compares to none in the market. We
boast not only of quality and taste of our bread
line selection, but now we have over 30 varieties
of pastry goods selling in the market. For more
than two and a half decades now, pan-a-cup
have been doing business with top supermarkets
in the metropolis area and now even with chains
of convenience store in Metro Manila and
surrounding provinces.

B. Competing Product Features

COMPANY PRODUCT FEATURES

good taste
MISTER freshness
PULLMAN softness
oven-baked aroma and
reasonable prices

Superior quality products

MARBY FOOD Innovative
VENTURES Good taste
Wide range of variety

GALACTICA Distinct taste

FOOD CORP. Wide range of variety
(PAN-A-CUP) Good quality
Low processed baked products

C. Target Market Selection

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  Mister Pullman- Mister Pullman aims to target bread lovers with its product offerings. It caters

to target moms and young adults and students who are looking for easy to go snacks.
 Marby Food Ventures- With its variety of flavors and products, Marby aims to target family,

moms, also students and young professional to be their preferred snack. They also target those

who are looking for healthy breads and products.

 Galactica Food Corp. (Pan-A-Cup)- Pan-A-Cup with it’s innovative and healthy product line

aims to target young professionals and students who are looking for snack alternatives which is

healthy and affordable.

D. Positioning Strategy

COMPANY TAGLINE POSITIONING STRATEGY

MISTER PULLMAN "Can’t forget the great taste" Mister Pullman positions itself to
be the bread that you will never
forget, the bread that you can
always remember because of it’s
good taste, freshness, softness
and oven-baked aroma.

MARBY FOOD VENTURES
"Quality Baking Traditions" Marby Food Ventures positions
itself to be the superior quality of
bread in terms of baking process.
They want to be remembered as
the company that is known for
quality baking.

Pan-A-Cup positions itself to be

PAN-A-CUP “Basta Pan-A-Cup masarap” the bread that has distinct taste
and the bread that customers will
immediately consider because of
it’s deliciousness.

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E. Marketing Mix Strategies

COMPANY PRODUCT PLACE PRICE PROMOTION

MISTER Wide range of Availability in Reasonable price Use of website

PULLMAN variety products leading Use of Facebook

supermarkets and fan page

grocery stores.

Wide range of Availability in Affordable price Use of website

MARBY variety products leading

FOOD supermarkets,

VENTURES Produces healthy grocery stores,

Products convenience

stores and drug

stores.

PAN- A- Wide range of Availability in Affordable price Use of website

CUP variety products leading

supermarkets and

Produces healthy grocery stores.

Products

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 Differential Advantage Analysis

WEIGHT GARDENIA SCORE MARBY SCORE PAN- SCORE Mister SCORE

A- Pullma

CUP n
Key .10 7 .70 5 0.5 6 0.6 6 0.6

Industry

Success

Factors

Extensive .40 9 3.6 7 2.8 7 2.8 7 2.8

distributio

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Customer .20 8 1.6 6 1.2 7 1.4 7 1.4

focus

Economies .10 7 .70 6 0.6 6 0.6 6 0.6

of scale

Product .20 9 1.8 8 1.6 8 1.6 7 1.4

Innovation

TOTAL 1.0 8.4 6.7 7 6.8

Market Target (s) Description

Primary Market

The primary target market of Gardenia Bakeries is Generation X from ages 33-53 years old and

Generation Y from ages 25-32 years old of Class B and C with ₱15,000 and above income, mostly

mothers who are regular or occasional users of bread and who highly value the freshness, taste, and

nutritional content of the product. They are devoted to their family so they value work-life balance.

They easily adapt to change and practice healthy lifestyle.

Secondary Market

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The secondary target market of Gardenia Bakeries is composed of the children, students, and young

professionals. They are the ones who have great influence on the primary market’s buying decisions.

The children ages 4-11 years old who are exposed in various have significant influence over family

purchases. Students who look and spend for quality, convenient, and ready to eat products is also part

of Gardenia’s secondary market since Gardenia breads were made available in several school canteens.

Young professionals who also seek for instant yet healthy products are also a target market for

Gardenia.

Objectives

 To acquire significant share in the new target market

 To increase market share by 5 % over the next two years
 To increase demand for Gardenia products
 To expand its channel distribution in other parts of the Philippines and other countries in Asia

Marketing Program Positioning Strategy

The management wants the brand Gardenia to be positioned and associated with the qualities of

freshness, good taste, and uniqueness. It also wants the brand to be associated with a diverse product

line and ready-to-eat products. It wants to be positioned in the minds of the consumers as the top,

growing brand of bread company.

Marketing Mix Strategy

A. Product Strategy

Gardenia Bakeries Philippines should continue innovating by producing new products and product

lines that will cater larger market needs and preferences. The company should continue producing

quality, fresh, tasty, nutritious, and instant products to maintain loyal customers and gain more
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customers. They should also adapt to changes by improving their products’ packaging design and

offering new flavors that will suit the market’s needs and preferences.

According to the survey conducted with 31 respondents (See Appendix), the suggested new

products/product lines for Gardenia are; Gardenia-to-go (ready to eat sandwiches), Biscuits, Cookies,

Mamons, Ensaymadas and Gardenia spreads, jams & marmalade are the new products Gardenia

Bakeries could produce to increase demand and market share. Here are the lists of the new products

with its descriptions:

 Gardenia-to-go (ready to eat sandwiches)- Tuna, Bacon and Egg, Ham and Cheese, TLC

(Tomato, Lettuce and Cheese), Chicken sandwiches

 Biscuits- Healthy biscuits with dip of different flavors (Chocolate, Strawberry, Vanilla, Ube-

Cheese), biscuits with fillings of different flavors (Chocolate, Strawberry, Vanilla, Ube-Cheese)
 Cookies- Sugar-free/Wheat Cookies for health conscious customers
 Mamons & Ensaymadas- Fluffy Mamons and Cheesy Ensaymadas
 Gardnenia Spreads- Choco Hazelnut, Choco, Ham, Chicken, Peanut Butter, Tuna Spreads
 Gardenia Jams & Marmalades- Blueberry, Strawberry, Coconut, Pineapple, Mango

Gardenia should also improve its packaging to attract more customers and ensure the quality of its

products. The suggested packagings according to the survey are; Zip-Lock pack, Box-form (Travel-

pack, Picnic-pack, etc), Zip-Lock pack, and Mini-size Sandwich.

B. Distribution Strategy

Since the start of Gardenia’s operations, its distribution had grown rapidly. Gardenia is now considered

as the most widely distributed loaf brand in Metro Manila and other parts of the Philippines such as

Isabela, Abra, Cagayan, and Ilocos provinces in North, Bicol and Sorsogon in the South, and Negros

Samar, Antique, Iloilo, and Leyte in Visayas region and other parts of Mindanao.

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 Manufacturer – Wholesaler – Retailer –Consumer

Manufacturer- Gardenia should continue using hi-tech and advanced machineries and equipments in

producing their products. Gardenia uses the traditional American Sponge and Dough bread-making

method to bake soft-textured loaf with a tender crust and distinct taste. This unique method ensures

that Gardenia's bread stays fresh longer and tastes so good you can even eat it on its own.

Gardenia should enhance and expand its manufacturing facilities to produce more high quality, tasty,

and fresh breads to be distributed and offered to its customers.

Wholesaler- Gardenia pioneered a unique distribution system, ensuring that only fresh breads reach

customers every day. Gardenia should continue its international policy of keeping only fresh stocks on

the store shelves. Delivery vans leave the production plant as early as 4 o’clock in the morning to

distribute the products in specific locations nationwide as soon as it is produce from the factory.

Gardenia Philippines always replace unsold breads with their freshly baked premium quality breads

and other products. This is to earn wholesalers’ trust that their products are of good quality and will be

patronized by sellers and customers.

Gardenia’s wholesalers should improve its marketing strategies through different promotional strategies

such as offering product bundles, discounts, and coupons, to attract retailers and other sellers to offer

the products to several customers.

Retailers- Gardenia should maintain its good relationship with the retailers offering their products by

following their rules and regulations and offering them good deals and benefits to have a good position

in their stores. Gardenia should provide evidences that will ensure that their products will be bought by

several customers.

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Retailers such as supermarkets, hypermarkets, convenience stores, bakeries and other retail stores

selling Gardenia products should improve its services and its store atmosphere to satisfy its customers

and make them buy their products. They should also conduct different promotions such as buy 1 take 1,

product bundles, discounts, patronage reward such as coupons, raffle tickets, etc. to remain loyal

customers and gain new customers.

Gardenia Stand-Alone Stores- Gardenia should build stand-alone stores that will offer all their products

to several customers. Since one of the qualities customers are looking for a product is its availability

and convenience in buying it, Gardenia should make its products widely available in locations

convenient and accessible for their customers. Kiosks should be placed in MRT stations, bus stations,

and other locations where customers usually look for ready to eat products.

C. Price Strategy

Maintain premium pricing for Gardenia

- It used to maximize profit in areas where the customers of gardenia are happy to pay more,

where there are no substitute for the product, where there are barriers to entering the market

or when the seller cannot save on costs by producing at a high volume.

D. Promotions Strategy

Gardenia should build brand preference among C and D market while strengthening hold of the A B

market through high impact advertising and promotions. Gardenia will maximize the use of online and

online advertising.

Integrated Marketing Communications (Promotion) Strategy

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• Integrated Creative Message Strategy

- ‘So good… you can even eat it on its own’ or ‘masarap kahit walang palaman’

• Advertising

• Sales and Promotional

- Tie up some events and festivals.

• Publicity/pr

- Conduct a survey “house to house” to reach house wives/house people and introduce their products,

give sample and collect feedback.

• Digital Marketing

- Gardenia Bakeries will use push/pull digital marketing.

• Collaborate general knowledge quizbee competitions on highschool campuses and product

innovation contest on universities

IMC OBJECTIVES

Gardenia Bakeries’ objective should be expansionary, given its current standing in the market. A market

leader can maintain, grow and prospect its position in the market by employing strategies focused on

the following:

a. To acquire loyal customers.

b. To encourage more frequent usage form consumers.
c. To find new uses of product.
d. To increase sales.
e. To establish Brand Recall.
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 BUDGET
Print Advertisements (leaflets, tarpaulins etc)
- Leaflets will contain the basic facts such as price, appearance and basic nutrient contents. This
is intended to be distributed to the public markets and stores during the launching of the
products. Tarpaulins will contain the layout of the leaflets and to be posted on the distributing
places of the products all over the Philippines.

Php 50,000.00

Media Advertisements (Radio and TV)

- An effective attention getting advertisement will be aired on the different channels of media.

Php 1,000,000.00

Commissions
- It will be given to stores and distribution channels that sell the product. A 15% of the sales will
be given to the distributors.

Php 2,250,000.00

Purchase Discounts
- It will be given to the customers that will be purchase the 10 pieces packs of the product
during peak seasons such as Christmas sale. A 20% discount on purchase price will be given.

Php 3,000,000.00

Free Taste
- This will be done during the launching of the product. Samples of the product will be
distributed to the customers through the product stall in different distribution channels
nationwide. Php 65,000.00

Php 15,000,000.00 (estimated sales related to pan de sal per year)

Marketing Implementation
A. Structural (Internal)

Team buildings in the company and in the factory will enhance the capabilities and strengthens

the power of work force in the company of Gardenia bakeries.

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Time to time inspecting of machines in the factory would help to avoid malfunction of machineries.

Gardenia could do marketing programs like giving rewards to the employees that will make them

motivated and inspired to their work.

B. Tactical Marketing Activities

Specific Tactical Person/Department Required Budget Completion Dates

Activities Responsible

Product Activities
Launch the new Marketing Department 31, 500, 000 January 2014-
Gardenia products: December 2014
Gardenia Spreads Operations Department
Gardenia Jams and
Marmalade Finance Department
Gardenia Ready-To-
Go Sandwiches
Gardenia Cream Filled
Biscuits
Gardenia Filipino
Biscuits
Gardenia Mamon and
Ensaymadas

Pricing Activities
Christmas Package Marketing Department 10,500,000 March 2014-
Basket (Consumers December 2014
can buy Christmas Operations Department
basket filled by March 2015-
Finance Department December 2015
Gardenia products,
this basket may serve
as their Christmas gift)
Bundle Promo
(Bundle promo is
suggested to help
consumers save)
Pasalubong Bundle
Pasalubong bundle is

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also created to help the
consumers save by
buying in bulk than by
piece.)
Discount Coupons

Distribution/Supply
Chain Activities Marketing Department 21,000,000 January 2014-
Stand Alone Stalls March 2014
Food Kiosks Operations Department
- All kiosks and
stalls would be Finance Department
placed on more
foot traffic
areas and
where people
are always on
the go like
MRT and LRT
stations,
schools and
universities
and other
transport
stations.

IMC (Promotion
Activities) Marketing Department January 2014-
1.Launch Gardenia December 2016
Bread Apps for Kids Finance Department
- Gardenia would
launch apps that would
be very interactive to
children and definitely
an educational one.
2. General Knowledge
Quizbee on
Highschool Campuses
- this is to promote
education and to create
brand awareness and

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recall
3. Product Innovation
Challenge and Search
for the new Gardenia
flavors competition
on top performing
universities
- collaboration on
universities would be
held for product
innovation specifically
on marketing students
and search for the new
flavors competition
that would target
HRM and culinary
students.
4. Launch new
interactive website
- Website would be
more fun and
interactive, blogs
would be posted that
would advise
consumers regarding
healthy living.
5. Gardenia Photo
Contest
- Gardenia will look
for the best family
photo promoting
family bonding while
enjoying Gardenia
products.
6. Gardenia Give Love
on Christmas Day
- Consumers would be
highly encourage to be
part of the Gardenia
Outreach program that
would benefit
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 homeless families.
7. Use of the
Traditional Media
- placements of ads on
magazines and
newspaper, placing ads
on radio and TV to
increase brand
awareness and recall.
8. Maximize the use of
Social Media
- Gardenia will use
social media to hype
the market about
Gardenia’s new
products and will use
contests and games on
the following social
media platforms like
Twitter, Instagram and
Facebook.
9. Support Fun Run
and Sports Clinic.
10. Conduct Baking
Workshop Activity
during Summer for
Kids.

Monitoring and controls

A. Marketing metrics
Product-Based Metrics
 Customers
 Customer feedback through surveys
 Customer feedback through social media accounts and website
 Measuring the size of the market through referrals, word of mouth and

awareness
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  Quality of Product
 Through customer’s comments and suggestions
 Through number of sold to customers
 Sales Volume
 Conducting sales report on a weekly, monthly, quarterly and whole year

basis for the advertising media, events and sponsorships.

 Market Share
 Conducting research on market share information
 Collecting data from Primary and Secondary data
 Marketing Programs
 Evaluation of market program implementation
 Measuring effectiveness of strategies
 Feedback from the customers
 Conduct marketing audits

2. Secondary data

The company could collect secondary data from:

 Local Newspaper
 Annual reports
 Customer communication
 Government
 Industry research and survey
 General business publications
 Social networking sites
 News releases

3. Primary Data

 Customers
 Employees
 Consultants
 Suppliers
 Salesforce
 Survey

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FORECASTS AND BUDGET

3 years (2011-2013 (weighted moving average))

YEAR INCOME WEIGHT RESULT

2011 2,000,000,000 .2 Php 400,000,000
2012 2,500,000,000 .3 Php 750,000,000
2013 3,500,000,000 .5 Php 1,750,000,000

BUDGET

3,500,000,000 x .03= 105,000,000 ALLOTED BUDGET for 3 years

ACTIVITY/PROGRAM BUDGET
Creation of New Products 31, 500, 000= 30%
Pricing Activities 10,500,000= 10%
Traditional Media (Print, Radio and 21,000,000= 20%
Television Ads)
Distribution/Supply Chain Activities 21,000,000= 20%
Other IMC (Promotion Activities) 15,750,000= 15%
Contingencies 5,250,000= 5%
TOTAL Php 105,000,000

SOURCES:

http://www.ohiodominican.edu/uploadedFiles/Library/CoursePages/Courses/Bus/Bus498/SWOT

%20Matrix%20and%20Organizational%20Strategic%20Plan%20Paper.pdf

http://www.uniassignment.com/essay-samples/management/management-in-the-food-processing-

industry-management-essay.php#ftn9

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http://www.euromonitor.com/baked-goods-in-the-philippines/report

http://pana.com.ph/gardenia-is-happy-to-be-part-of-the-filipino-household-for-15-delicious-

years/

http://gohsookching0307949.blogspot.com/2013_06_01_archive.html

http://www.misterpullman.com/#!pastries

http://www.marbyfoodventures.com.ph/MarbyProducts.html

http://panacup.wix.com/panacup#!about_us/c1se

APPENDIX

Survey Online Question

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SURVEY RESULTS CHART PRESENTATION

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SAMPLE NEW PRODUCTS

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