Metro Business College

200 Arnaiz Avenue

Pasay City

A STRATEGIC REPORT

In Partial
Fulfillment of the Requirement for degree of
Bachelor of Science in Office management
Of the Subject
Strategic Management

Presented to
Professor Rebecca T. Sambu

By:
Maria Pauleene S. De Vera
2021
I. Executive Summary

The business also known as Stomping Ground Triumph, is an upscale yet affordable bar and
lounge strategically located in BGC, Taguig City, Metro Manila, Philippines near one of the fast
growing commercial hub in the metro. The business is focused on creating an exciting
environment where people can purchase affordable food, drinks and venue for their events.
Our lounge meets the demand for people who want an alternative escape from toxified reality.
The business has a spacious design and elegant pictures foster an environment of relaxation
and fun. In the midst of the pandemic, we are still operational with limited guest
accommodation under mandated regulatory. We also serve our delicacies digitally via @SGTph
Facebook Page and Instagram, email address at sgtph@gmail.com, and a reachable contact
number 09070140223 / 02-254-1968.

Mission

To provide the highest quality product at the lowest possible price, the best consumer
experience in the industry, and respect for our employees, business partners, and community.

Vision

To be the world's favorite quick-service restaurant and event organizers.

Goals and Objectives

Provide a customer experience that encourages repeat business.

II. Industry Analysis

The following industry size facts and statistics bode well for the business.

According to Market Watch the percentage of beer, wine, and liquor consumed in bars and
restaurants as opposed to private settings is growing.

According to the Distilled Spirits Council PH on premise volumes of spirits grew an estimated
6.3% last year. That compares to overall growth of 3.9% while on-premise revenues grew by
11% vs. 7.5% in all channels.
According to Dun & Bradstreet and the National Club Industry Association of Philippines:

Last year, the bar and nightclub industry’s drinking establishments primarily engaged in the
retail sale of alcohol drinks numbered 60,876. The establishments generated approximately $15
billion in combined annual sales. The average establishment generated approximately $200,000
States representing the majority of establishments included: Quezon City (4,489), Makati City
(4,449), Mandaluyong City(4,388), Pasig City (4,283), Pasay City (3,634), Parañaque City (3,572),
Las Piñas (3,191), and Pateros (3,201).

The National Club Industry Association of Philippines reports that the industry is highly
fragmented with taverns accounting for the largest sector with 19,660 drinking places. Bars and
lounges represent 19.8 percent of the market. According to the Philippines Census Bureau’s
Statistics of Philippines Businesses, there were about 351,912 people employed within the
industry with nearly PHP4.1 billion in annual payroll.

The Philippines Department of Commerce reported that alcohol sales were up 5.2 percent to
nearly PHP2 billion. According to the National Club Industry Association of Philippines beer
accounts for approximately 40 percent of sales, distilled spirits or hard liquor 30 percent, food
and non-alcoholic beverages 10 percent, and wine 7 percent. Forms of entertainment include
live music, DJs, dancing, and events entertainment.

Competitor Analysis

The following bars and restaurants are located within a 2 mile radius of SGT, thus providing
either direct or indirect competition for customers:

B’s Bar & Lounge

B’s is the only bar located near the university within walking distance and has been in operation
for 15 years. The bar offers a wide selection of alcohol and food items, but offers no
entertainment.
Many alumni visit the establishment and host events. However, many has complain that the
establishment is too small and needs to be remodeled. In addition, B’s offers a variety of items,
but the items are overpriced.
Salsa & Chips

Salsa & Chips has been in business for 7 years and is a restaurant with a small bar located inside
of its establishment.
However, SGT has several advantages over Salsa & Chips including:
● Salsa & Chips does not offer entertainment
● Salsa & Chips offers only Mexican beers
● Salsa & Chips closes early
● Salsa & Chips does not have a happy hour

Pub & Deli

Pub & Deli is located four stores to the East of us. Pub & Deli has been in business for the past
10 years and enjoys great success, primarily due to its prime location (which we will also have).
SGT has several advantages over Pub & Deli including:

● Pub & Deli does not offer products, including imported beers and hard alcohol
● Pub & Deli does not offer entertainment

While we expect that Pub & Deli will continue to thrive based on its location and customer
relationships, we expect that more and more customers will frequent SGT based on our lounge
catered for legal aged people and their desire for place to enjoy the sceneries and drink.

SGT enjoys several advantages over its competitors. These advantages include :
● Location: SGT’s location is near shopping malls, offices, residences, hotels, parks, college
schools giving us access to students, workers, and residents that live nearby.
● Décor and Environment: The bar and lounge will have the latest décor and premiere
sound system to attract people nearby.
● Management: Our management team has years of business and management
experience that allows us to market and serve customers in a much more sophisticated manner
than our competitors.
● Relationships: Having worked in the industry for 5 years, The owner has the contacts
with suppliers and promoters to successfully launch a bar.

III. Environment Analysis

The global foodservice sector continues to feel the pressures of the economic recession,
unstable food and energy prices, a fragile housing sector, and depleted consumer confidence.
Industry players continue to focus on brand differentiation and value-added products to attract
consumers. Food demand is rising in tandem with the global population. Increasing
urbanization and a general population shift from rural areas to urban areas is causing a change
in lifestyle trends, especially eating habits. With an increasing number of people working in
office environments and growing family households with two parents in the workforce, time to
prepare food at home is limited. Consumers under time constraints are opting to eat outside in
cafés and restaurants, with price-conscious consumers often turning to fast-food options such
as mobile trucks and street stalls.

Restaurant industry has four general segments according to the service customers receive: full
service, quick service, eating and drinking place and retail host. Full service dining locations do
not require any food preparation by customer as well as service of food. Fast-food chains that
offer buffets and take-out service represent quick service locations. Eating and drinking place
sector includes caterers and refreshment stand vendors. And the retail host is located within
the gas stations and retail-host restaurants.

Fine dining restaurants are full-service restaurants with an upscale menu and extensive
beverage offerings. The restaurants generally have a more sophisticated décor and ambiance,
the wait staff is usually highly trained and often wears more formal attire, and there is often a
dress code for patrons. The most important factors that customers expect from the upscale
dining establishment are food quality, service and VIP treatment.

The profit of fine dining establishments depends for the most part on business entertaining,
and the volume of the business people that charge their dinners on expense accounts declined
dramatically after the recession. As a result, the upscale dining segment is reconsidering their
offerings very carefully in order to be able to compete in the market and attract customers.
Since the consumers are still watching their spending, a majority of upscale dining restaurants
went in the direction of new pricing strategies and innovations as well as creating casual dining
environments. Trends of casual fine dining have led to the implementation of two different
concepts within one establishment: casual bar areas with small-plate offerings and formal
dining spaces for the whole experience. Key trends that help the restaurant industry to keep
the balance and improve the sales are mergers and acquisitions, driven by private equity firms
with greater access to the capital markets; open credit markets with improved rates, terms and
required equity contributions and the focus on the local sourcing, sustainability, and nutrition
that top menu trends. The environment that a company operates in goes far beyond the
industry and even farther than the industry segment where company has business. That
environment is defined as company’s macro-environment and is composed of seven
components that have the potential to affect the company and its competitive environment:
trends of technology, demographics, economic conditions, political and regulatory factors,
social forces and global factors. These entire factors can influence the company in different
ways and to different degrees.

External drivers of the upscale dining segment in the restaurant industry are per capita
disposable income, employment status, healthy eating index, consumer spending and
consumer sentiment index. Per capita disposable income determines the ability of the
population to spend money on goods and services. Wealthy populations will be influenced by
the tax rate and rising prices on the high end and luxury goods that could slow down the real
income growth in 2013-2017. Employment status is positively correlated with the dining out
and choice of where and how often. Rising national unemployment rate can negatively affect
the restaurant traffic, the upscale segment specifically.

Healthy eating index is the percentage of a recommended diet that an average American
consumes. The overall trend towards eating vegetables drove up the vegetable prices as well as
produce prices. Another trend is low carbohydrate and high protein diets that will increase
meat consumption.

Consumer spending is defined as amounts spent by the population on services and goods inside
the country and abroad. A brighter outlook of the economic recovery and higher employment
drive the increase in consumer spending rather than savings. Consumer sentiment index was
affected by growing corporate profits in the last two years and ability of businesses to keep
wage costs down. All of that stimulated the customer sentiment. In April 2012 consumer
sentiment index reaches its’ highest for the last year that will be reflected hopefully later in the
increase of restaurants visits.

PEST Analysis

Political stability ensures how much a business will flourish. The business must be flexible tp
adapt to these changes and plan business strategies accordingly. The increasing disposable
income of people has given it a boost. Growing labor cost can be a matter of concern for the
business. It will lead to less profit for the owner. It might affect the growth of the business in
the coming years. The busy lifestyle of the people has increased people’s dependence on ready-
made food instead of home cooked food. Technological advancement such as accepting
payment via smartphones. The introduction of the latest software to manage the accounts of
the business can lead to fewer errors and more profit. The primary criterion in the business is
cleanliness. The business must work in collaboration with the government. Legal factors play an
essential role for the business, especially the ones operating globally. Food quality and hygiene
criterion are two crucial factors that come under the product safety of the legal factors.
SWOT Analysis

The business strengths are reasonable pricing, unique menu or menu items—food or cocktail,
or something like a food and wine pairing menu, decor, ambiance, and environment,
neighborhood or location (close to a highly-commercialize residential, mall, and parks) outdoor
dining options, menu quality and customer service.

The business possible weaknesses are poor customer service, long wait times (for food or
seating), high prices (depending on customer average budget), noise levels (since we cater
events), and cleanliness (customer might take advantage noticing how the floor works is,
especially on peak hours)

The business opportunities are not embracing diet preferences. Veganism, vegetarianism,
paleo, gluten-free, etc. Engagement, things like happy hour ideas, bar promotions, and
restaurant marketing ideas. Any weaknesses the business may have noted that the business can
address, like food price, menu variety, customer service levels, wait times, etc.

The business threats are any new restaurants in your neighborhood opening, new restaurants
that directly compete with your customers opening anywhere in your city, successful
competitor promotions and specials, any new competitor menu items, and industry-wide
threats to the restaurant industry as a whole—like B2B business wholesale prices increasing
due to drought or a public health crisis.

IV. Strategic Plan

Marketing aspect is the most essential part of this business. The marketing objective of the
business is generating awareness, to be visible locally and let people recognize the business
brand. Increase repeated visits, potential target market are also potential loyal customers
within high chance to have better relationship to be establish and can be possible collaborators
for the business word of mouth. Competitive differentiation, the business would like to have
target markets to know the business edge for food, beverages and events services.

Applying the concept of marketing mix will help the business growth. Keeping the 4P’s concept
will truly provide the business an edge to other competitor. First is the product of the business,
there is a variety of product within the business. There are food, beverages, lounges, rooms and
events. This products being offered is not available in any other competitors. Secondly is the
price, our price ranges from 100-10,000PHP depending on the product being choose by
customers. Third is the place, the product with reasonable prices is to be distributed exclusively
with the business premises. Lastly, is the promotion, any business have this strategy to gain
growth in any aspect of the business. The promotions offered in the business are customers’
discounts for especially regular customers. We will offer these discounts through a discount
card, and also through fun promotions on our social media channels.

The business will have a long term plan, is to increase monthly net sales, by promoting the
brand, maintaining standards procedures in preparing and serving the brands being offered.
Increase daily net sale, marketing strategies of the business should be boost at all times to
persuade to even more potential customer to commit the daily goal net sales. Improve
employee productivity, to decrease the risk of theft in the business or potential lost, healthy
working environment will be provided, 13 th month pay, 21 leave credits and additional wages
for extra working periods, commendation of promotion will be prioritize depending on
performance, bonuses for best performance and etc. Living up to the brand and services being
provided to by the business to make sure potential customer would not forget to come back
again. Setting financial aspect on top priority so that the business will remain.