CUTIE PIE FOODSHOPPE: The Name of the Game

Case 13

After thirty years of serving the Manila market, the management of Cutie Pie Foodshoppe (CPF)
decided to open branches in provincial cities. CPF’s traditional products consist of bread and cakes.
After so many years of operation, the original shop expanded its store to accommodate fast food
customers. The company also expanded its assortment of products by adding more options in terms of
variety and price. The original shop located in Quezon City became the model for all branches.

The original shop is well patronized by customers who are either Manila residents or transients.
The branches with in Manila are moderately successful, but most of those in the provinces could not
duplicate the performance of the original price.

Miss Betty Pol, a resident of Bulacan often dines at the CPF’s original shop. This she does
whenever she goes to Manila. She has been a faithful customer since she was a college student in one of
the well-known universities of Manila. When CPF opened a shop in Bulacan, Miss Betty Pol anticipated
the delicious meals she used to have at CPF Quezon City. She was surprised, however, when she found
out that the quality of the food served cannot be compared favorably with those served at the original
shop.

After five months of operation, the Bulacan branch of CPF could not generate enough sales to
justify its continued existence. The branch manager, Desiderio Castillo, is not even aware of the case of
Miss Betty Pol. Mr. Castillo keeps on producing advertising posters to stimulate demand. He even hired a
person to distribute leaflets to prospective customers. The effort, however, do not seem to produce the
desired effect.

Mr. Castillo sought the opinion of the general manager in Quezon City but he could not get the
insights he needed. He was told to observe the original shop and duplicate its activities. He thought that
this will be difficult for him to do because he cannot afford to leave even for a day his shop in Bulacan.

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