`MARKETING FINALS PETA 8-10 pages

Group 1 Members: 12G

TALAO, Alyssa
JARDINEL, Diego
ALI, Daanial
SESE, Joaquin
LASCANO, Ailah
TORRES, Paulo

Food Industry: Max’s Group

Part One
Company Information

Before Max’s Group Inc. was the great group it is today, it started out as the humble
Pancake House Inc. (PCKH). It was incorporated on the first of March 2000 when it engaged
in developing, acquiring, managing and franchising restaurants and food brands. Not long
after, the company announced it’s agreement to sell itself and all it’s shares to the Max’s
Group of Max’s Group of Companies on December 20, 2013. The obtaining of all it’s shares
to several Max’s Group restaurants combined with the restaurants brands of the Max’s
Group and PCKH became effective on July 2014. In addition, the Securities ans Exchange
Commission( SEC) approved the change in the corporate identity and stock symbol of PCKH
to the present one on August 22, 2014.

"Max's Restaurant"; "Pancake House", "Yellow Cab"; "Krispy Kreme"; "Jamba Juice";
"Teriyaki Boy"; "Dencio's"; "Maple"; "Kabisera ng Dencio's"; "Sizzlin' Steak"; "Le Coeur De
France"; and "Singkit" are the brands that currently mold the Max’s Group portfolio of
homegrown and international brands as of December 31, 2016. There are total of 622
outlets across these brands.

Lastly, Max’s Group has expanded by establishing outlets that offer various services such as
the Max’s Corner Bakery which serve grab-and-go bread, pastries, and cakes. Other outlets
owned by Max’s Group include The Chicken Rice Shop which offer halal quick service
restaurants brought into the Philippines via a joint venture entity.

Source: SEC Form 17-A (2016) http://edge.pse.com.ph/companyInformation/form.do?

cmpy_id=135

Mission
Its vision is to be the leading Filipino Company with the most loved brands by 2025. Goal of
delighting its customers and continually searches for partners who share the same passion.

Vision
To consistently serve new customers in new territories fresh, genuine, quality food and a
great dining experience in different formats.

PESTEL
Political
-
Economical
- Max’s Group does numerous contributions to the economy. First, it increases the local
employment rate whenever Max’s Group opens up new branches of their respective
restaurants or expand operations which require an increase of Human Resources. Second,
tax income will increase since the number of people in the work force is increasing thus
more people are able to pay tax. This way the government has more funds to improve and
solve the country’s social issues. Lastly, the poverty rate will lower since more citizens are
earning wages and salaries.

Social
- The social aspect of Max’s Group in gaining customers and it has become a choice for
job seekers. The social aspects helps and benefits Max’s Group grow and increase
profitability
Technological
- Technology aids in the communication and creation of products and services.
Technology also aids in the customization of tasks thus operations are done more effectively
and efficiently.
Environmental
- Max’s having several restaurant’s to it’s group located in various places such as mall
strips and sometimes as a fully established building. The variety and abundance of
restaurants and its respective branches allows Max’s Group to serve more customers and
increase in profitability
Legal
- Max’s Group has different laws and regulation that may affect the business organization
including consume act (establishes quality and safety standards), and food safety act.

SWOT Analysis
Strength
o The use of gift certificates
o Several branches making it highly accessible
o Product offerings aside from pancakes / best seller
o Brand presence; famous and well-established
o Brand loyalty; trusted; good customer service
o Marketing campaigns are widespread and clear
Weaknesses
o Sales are primary focused in the early parts of the day / breakfast compared to lunch and
dinner
o Maintaining the restaurant branches into having a good ambiance to eat it
o Slow delivery service during customer overload
o Food in the menu that takes long to cook which can cause delay in serving
o Limited branch presence in other secondary (not main) product lines
o Expanding and selling other secondary (not main) product lines
o Easy to lose trend if innovation in menu is not present
Opportunities
o Franchisees of the restaurants will increase profit
o Partnership with delivery systems for food delivery
o Increased use of social media for marketing, service, and advertising
o Seasonal offerings / season themed offerings
o Partnerships with other companies
o Online ordering systems could be introduced; technological advancements
Threats
o Delivery problems of materials from suppliers may delay or stop production
o Increase in price of suppliers of materials will increase expenses
o New restaurants that offer similar and enhanced food
o Bigger discount offered by competitors will attract more customers to them
o Expansion of business could mean the business could be understaffed and would lead to
more training and development needed
o Customer’s demand shift to healthier food options
o Economic changes such as increase in price of raw materials could mean an increase in
expenses

Porter’s Five Forces

Competitive Threat of New Buyers Power Threat of Suppliers

Rivalry Entrants Substitutes Power
- Bistro Group - Café 1120 (ALI’S PART) - Jollibee Foods (ALI’S PART)
- UCC Café - La Crepie, Corporation
- Army Navy New Manila - Golden Arches
- Friday’s - The Bunny Development
- Papa Johns Baker Corporation
- Rap Steaks - Aly’s All Day
- Savory Classic Breakfast specific products
- Shakey’s - Denny’s that are
Pizza considered to be
Is it hard or substitutes
easy for a start- - Nestle
up / existing Breakfast
company to Cereals
enter the food - Bread from
industry? the Break Talk
> It is easy for a - Silogs from
start up to enter Rufo’s Tapa
the industry - Donuts from
because the JCO
requirements
such as permits
and clearances
are easy to
obtain.
However,
staying in
business or
maintaining the
business to
continue its daily
operations is
hard.
Part Two
Market Segmentation and Target Market
Pancake House was bought by Max’s group, and is now a part of the group. In a
statement made by the Pancake House President and CEO Robert Trota, it was revealed
that the firm spent several months evaluating extensively the Pancake House Business and
its brands as well as the potential synergies with Max’s group. Furthermore, the firm
concluded that with the help of management, the integration of Max’s Group and Pancake
House was in the best interest of the shareholders of Pancake House.
Furthermore, on the official website of Pancake House it states that Pancake house
has over 100 franchises in the country, and even has international outlets in countries such
as Malaysia, and other Southeast Asian Countries, and even in the Middle East. This shows
that Pancake House is continuously expanding, and is expected to grow more and improve
to serve its customers, earn revenue, and serve the best interest of the shareholders.
It can be observed that one of the main strategies of Pancake House is to expand its
operations through opening more branches, and with Pancake House being a part of Max’s
Group, combined with more marketing strategies and analyses, the firm may notice an
increase in customers, and operations. The overall market for Pancake House has increased
as it has performed Market Development. Max’s group may provide support to Pancake
House for the firm to increase its expanding growth as Trota further added” The integration
makes Pancake House is now the largest restaurant group in the country’s increasingly
competitive casual dining segment”. With all that said, Pancake House now has to adjust
and learn to cope and thrive in the new segment which they are in, and one way to do this
would be to address and evaluate the firm’s customers,

Geographic:
● Nationwide with multiple franchises spread around the country
● The company is expanding internationally
● Given the price range of the company, the market would tend to be more
dense/focused on the cities and urban areas
● Market Size: all the families of middle to high wage earners also people who are
working already, and teenagers
● Market Density: 65% of its market size
Demographics:
 ● Age: All ages may consume the product, as there are certain menus for some ages
(usually teenagers go to the restaurant)
● Gender: Male and Female
● All races and ethnicities may consume the products
● Marital Status: Single, Married, or Widowed
● Social Class: Middle to Upper Class usually due to price range, however the
business is open to all
● Income: Middle wage to high wage earners; Income is quite above the minimum
wage; Has discretionary money
Psychographics
● Personality: People who enjoy eating out for breakfast or brunch because the
restaurant is focused on their breakfast menu
● Motives: Customers would go to have a hearty fine dining meal
● Lifestyle: Pancake House caters to all lifestyle choices; there are some healthy
product offerings
Benefits Sought:
● Satisfaction of the need of hunger
● Place/ platform to meetup, and have social gatherings
● Affordable good tasting food which satisfy cravings
● Trusted by the public because of its good reputation and long term service
Usage Rate: Medium Consumers are being targeted. This is because the restaurants aims
to serve more customers rather than having primarily heavy consumers which would lead to
less chances for others to try the product. This would also prevent potential heavy
consumers from losing interest in the products of the restaurant because of always eating in
the restaurant.
Overall, through the use of the concentrated strategy from the market segment , the target
market for Pancake House are medium consumers of Pancake House’s products who
belong to the middle-upper class of society and may be of any race/ethnicity. Moreover, they
may be teenagers or young adults living in more urban areas/cities of the country who would
want to meetup, and satisfy their need/cravings by eating trusted food. Moreover, the people
who wish to eat satisfying breakfasts and/or brunches would go to the restaurant as well.
Market Positioning
Pancake house, being a part of the Max’s Group is already an advantage for the restaurant
to have a high position in the market. Although this may be the case, Pancake house as an
individual restaurant uses some positioning bases in order to maintain or travel to a higher
position in the market. An example of this would be in the price and quality. For Pancake
House, majority of the meals or meal combo sets start at a price range of 200 pesos. With
this,Pancake house is able to reach potential consumers who consider budget in selecting
meals. Another base Pancake House uses is the use or application. Since the restaurant is
called Pancake House, one can say that pancake house specializes in breakfast meals
mostly pancakes and waffles, although Pancake House has broadened their menu with
lunch and snack meals. Examples of these are tacos, pasta , and fried chicken. Knowing
this, the use of Pancake House has also expanded. What was once known as a breakfast
restaurant is now also known as a place for lunch and dinner. Through this, Pancake House
gives the opportunity for more consumers to enjoy their products at any given time of the
day.
On the other hand, Pancake House also has to note that it has direct and indirect
competition in its market which make it harder to gain a higher market share. Such direct or
indirect competition include other franchises and groups formed by companies like JFC
(Jollibee Foods Corporation). Another factor would be the product user as it can be observed
that nowadays Pancake House is more of a social gathering area for friends usually
adolescents and above, allowing for competitors to target similar/related users such as
families to compete. Moreover, pancake house is not extremely exclusive as other dining
firms, but there are factors like consumer mentalities which make consumers purchase more
expensive products. Furthermore, Pancake house may use its expanding product line as an
attribute to attain a sufficient market position and earn a higher percent of the market share.
Overall there are attributes/factors which contribute to improving or dropping the market
position of the company, but when combined it shows the market position of Pancake
House.
Perceptual Mapping
This is the map showing the market position of Pancake House in the dining segment.

Something yung table….. (hindi ko macopy paste idk why)

Based on the figure above, compared to the other restaurants in the max’s group of
companies and other corporations/food chains, the restaurant is found in the close to the
equilibrium of both affordable and exclusive, and family and friends, making it available for
all but more visited by groups of friends for its comparative affordability.

References:
The Abraaj Group. (2016). Pancake House, Inc. Partner Case Study. Retrieved from
https://www.abraaj.com/wp-content/uploads/2017/02/Abraaj-Case-Study-Pancake-
House.pdf
Regalado, C. (2013). Max’s acquires Pancake House. Retrieved from
https://www.rappler.com/business/46349-max-acquires-pancake-house
Pancake House. (n.d.). Welcome to Pancake House. Retrieved from
https://www.pancakehouse.com.ph/about
Max’s Group, Inc. (n.d.). Pancake House. Retrieved from http://www.maxsgroupinc.com/

Part Three
Product Concepts

Ø Available / Existing Products:

- pancakes with variations like cheese, banana, chocolate chip, etc.

- bacon and egg with pancakes

- waffles with variations such as bacon, chocolate marble, peach etc

- country sausages and crispy bacon strips as ADD ONS

- Breakfast items not limited to pancakes and waffles such as toast, longganisa, pork
tocina, tapas, omelettes

- Soups and salads such as mushroom soup and Caesar salads

- Main course meals such as pan chicken, spicy chicken fillets, steaks, viennas, fish,
mac n cheese w/ bacon, carbonaras, spaghetti, and seafood gambero

Ø New/ Innovative Development

- all day breakfast for all the people who love breakfast

- partner with cinemas, to add breakfast meals in the cinemas

- kids corner: add products like “Hakuna Fratatas” to target the kids and these
products are breakfast meals like pancakes
- customize breakfast like pancakes and waffles to add creativity and make market
enjoy the products

- add syrup containers where customers may add as much syrup as they want

- at 2-3 pm, have products that are slightly discounted

- a toy would be introduced based on the movie posters in the establishment to

encourage kids to buy and use it as a tool for the possible partnership with the cinemas

- complementary pancakes on special events like graduation with provisions

Pancake House, a seller of consumer based products, will be retained as is. Considering it
excels at producing and selling breakfast food and meal sets, it would be of best interest to
retain the it’s products for it will contribute to the attainment of company goals. ----tama ba
yung part na to-----

To achieve the good, the company would undergo product modification in a sense that they
would innovate or develop their breakfast menu, and how they would serve customers to an
extent. The company would reposition themselves to a extent , so that The target market
may shift more to friends and become an extreme to attract customers. This would be done
through development such as partnerships with cinemas, customization of food so that the
target market may be satisfied with the product, and get a product the way they envisioned
it.

Branding

ü Branding Strategy : Private Brand. To achieve the goal, the branding strategy would be
retained, so that pancake house as the name implies a place for breakfast, may earn profit
on their own brand and become more of what they are known to be. This also would let
customers to be more familiar with the products based on the name alone.

ü It is also an individual brand.

Packaging and Labelling

ü Currently, it is served on a ceramic plate served with whipped cream, syrup and other
condiments depending on order. It is more persuasive and to achieve goal it will be retained.

To Innovate
ü Introduce take-outs such as containers with dividers to make it viable for cinema viewing

ü Introduce pancake on a stick with dips to add variation and accessibility to make it creative

ü On the package itself, the name of the restaurant and breakfast related themes will be
applied

ü For the labeling, although it is retained, information could also be added to show health
benefits if accessible.

Pricing Strategy: Mark-up pricing and odd pricing

o To innovate, retain odd pricing and add price skimming to cover expenses, this also
allows customers to make repeat purchases and continue buying products.

o Loyalty cards with discounts would work because people are more likely to buy products
that are cheaper or discounted which will attract the customers, it will also cause the
increase in sales and the business will have repeat customers.