SUBMITTED TO:

MS. PINA T. COCHANGO

SUBMITTTED BY:

JASMINE CORPUZ, JUVELYN CASPE, JAHZEEL

BUENAOBRA, ESTELA ZARENO, JAMINE CALIMLIM, KIEN
KC CARINO, MARIANNE CAYABYAB, EDMUND JIMENEZ
EXECUTIVE SUMMARY

BACKGROUND
AND HISTORY

In an ideal world, having a good product with a loyal following should be

enough to keep a company afloat. However, that rarely happens in the
real world, especially once other market forces come into play.
Sometimes, the confluence of disparate factors contribute towards the
death of companies that one might assume were too big, too
entrenched in the market, to completely fail. Serg’s Chocolates, one of
the leading causes of kids’ cavities in the nineties, is one such example.
Most people can’t tell you when Serg’s first arrived to occupy their local
supermarkets, candy stores, and canteens. Then, as suddenly as they
had appeared, the brand vanished from shelves around the latter part
of the nineties. No Senti Sabado or throwback thursday hashtag passes
without at least one mention of the chocolate bar, but no one really
knows what really happened to the company. There are rumors of Serg’s
merging with, or being bought out, by bigger candy companies, but dig
deep enough, past the lists and forum posts wondering about Serg’s
Chocolates, and one can find traces of Serg’s true fate
Serg’s Chocolate was originally conceived in 1954 by Anton Goquilay as
Serg’s Products Inc, which produced Serg’s Candy Bars as their flagship.
Serg’s was named after Goquilay’s son, Sergio. Almost as soon as they
launched their brand in the fifties, they became that era’s darlings. Their
candy bars were an instant best seller, able to go head-to-head with the
international variants being sold in the country then. It stayed strong for
the next two decades after its inception. In the eighties, however, things
started to take a turn for the worse. At the height of unrest of the Marcos
Administration, the Goquiolay family migrated to the United States. In the
transition from the Marcos to the Aquino Administration, the company was
absorbed by the government as part of the Asset Privatization program.
Serg’s disappeared from store shelves all over the country. In the
intervening years that followerd the Goquiolay family’s migration, the
young boy that the company was named after grew up. After a stint as a
professor teaching marketing in a US university, he found the courage to
return to the Philippines in the early nineties and start over. His first move
was to take back control of his family’s company.
Sergio Goquiolay flew back to Manila to reclaim his family’s company,
succeeding in putting Serg’s Chocolates back in the spotlight.
With the reins of Serg’s Products Inc. back in his hands, Sergio Goquiolay
gave the company a much-needed rebranding and started making
chocolates again. In almost no time at all, Serg’s found their way back on
store shelves and inside Filipinos hearts. Even amidst tough competition
from multinational companies, Serg’s clawed its way back into relevance.
By the mid-nineties, the company was geared to expand its operations and
ready to start exporting to other neighboring Asian countries.
The 1997 Asian Crisis plunged Serg’s into debt, despite consistently
strong sales.
Unfortunately, all of Serg’s grand plans crashed and burned when
the 1997 Asian Crisis hit the Philippines. The company had taken
on loans in dollars to finance their expansion, and suffered
massive loses from the Peso devaluation of the time. Sales were
still good, but not nearly enough to pay back their loans. That,
coupled with some labor disputes inside their factory, plunged the
company deeper into debt.
With their numbers in the red, the company decided to cut their
losses. In 2001, Serg’s Products Inc. filed for bankruptcy. That same
year, Sergio Goquiolay passed away. Sources close to the family
say that they are exploring ways to revive Serg’s again, and have
started assessing the feasibility of starting the factory once again,
especially for this day and age. Whether anything will ultimately
happen, only time will tell. Still, Serg’s presence in the childhood
memories of so many of us is undeniable. More than any
chocolate or candy bar they ever manufactured, that perhaps
may be Serg’s greatest legacy.
VISION
To provide the best-value products. To
serve the community, to be concern
about and contribute to their well-being,
and to operate with integrity as to be
deserving of their trust.

MISSION
To aspire to become great and
enduring company and to dominate
the Southeast Asian confectionery
market.
GOALS & OBJECTIVES:
 To provide customers affordable
chocolate
 To keep on improving the service by
continuous innovation of the product
 To revive the brand “Serg’s Chocolate”
and to renew its position in the market as
one of the best Pinoy exported products.
 THE PRODUCT OFFERING

Chocolate is loaded with nutrients that can

positively affect your health. Made from the
seed of the cacao tree, it’s one of the best
sources of antioxidants you can find. Studies
show that chocolate can improve your health
and lower the risk of heart disease.

PRODUCT PRICE

1 BAR PHP 25

1 BOX PHP 100

PRICING STRATEGY
Serg’s Chocolate pricing strategy will be cost-
based pricing strategy where the price of our
product is based on the cost of the goods
being sold. A profit percentage or fixed profit
figure is added to the cost of our product
which results in the price at which it will be
sold. Whereas we offer reasonable price for
our product with high consideration of its
quality.
MARKETING STRATEGIES
When choosing a marketing strategy, there are
numerous sources of inspiration from which
chocolate businesses can draw. From case studies
of chocolate makers to marketing reports, there
are many sources marketers can draw from for
ideas. However, each chocolate business will need
to assess their own position and products before
settling on a marketing idea.
Chocolate Marketing Research and Ideas
Marketing research among premium chocolate
brands has revealed how these brands were
marketing themselves in such a way that they
continued to experience significant revenue
increase despite their higher price point. One way
that these companies positioned themselves was
by featuring their health benefits.
While not a marketing tactic that all chocolate
makers might be able to use, makers of dark
chocolate have a potential avenue for featuring
health benefits that other chocolate types cannot.
Dark chocolate, associated with health benefits for
the heart and brain, can be featured in marketing
materials in such a way that these benefits are
highlighted.

Using Smaller Portions of Chocolate

One interesting tactic that chocolate businesses
have made, which allowed them to diversify their
product offerings and open up a new marketing
avenue, was the use of smaller portioned
chocolates.
The first benefit of offering smaller portioned
candy was the potential for marketing a chocolate
product that potentially had a lower overall
calorie count, which would help these businesses
again focus on potential health aspects of their
products.
The use of smaller portioned products also gave
these companies a chance to sell candy at a lower
price, which appealed to a broader range of
consumers.
Featuring Chocolate as a Reward
Of course, one of the most tried and true ways of
marketing chocolate is by featuring the product as
a reward. In other words, chocolate is often
marketed as an indulgence, something people can
enjoy.
This is the kind of idea that can be sold by chocolate
makers of all kinds, regardless of whether they’re a
prestige brand or a common brand.
“Serg’s Ikaw pa rin” – Adopt the brand’s popular
tagline during early 90’s to easily introduce to the
Philippine market that the product being
introduced is in line with the long lost Serg’s
Chocolate brand. Invest in machineries - the
company is recommended to invest on factory
machineries as the first step in reproducing the
serg’s chocolates. Add additional Chocolate
Variant - in accordance with the confections
innovations, we suggest to Serg’s Products Inc. to
produce additional variants of serg’s chocolates.
They may introduce it in additional flavors like
caramels, dark chocolates, with almonds and
others. These chocolates can also be offered in
different forms (not just in bars) like enrobe the
peanuts and biscuits, as candies or even
powdered drink. Chocolate Wrappers -
changing the idea of making the chocolate
wrappers from colorful to simple combinations of
black, white, cream and other close-colors to
convey its image as exported goods.
EMOTIONAL BENEFIT
Gives a joyful and positive
feeling to the consumers
because of its luxuriously
chocolate taste

SOCIAL BENEFIT
Enhances communication skills.
Sellers/Owners can develop their
social skills which is very essential
in Marketing the product the
target market.
ECONOMIC BENEFIT
The business would give profit
for the sellers. A profit
percentage or fixed profit figure
is added to the cost of our
product.

FUNCTIONALBENEFIT
Sellers/Members can work
better. Serg’s Goals and
objectives guide and help
employees to work better.
MARKET
SEGMENTATION

We will guarantee that we use contemporary

technologies and fresh concepts to achieve our goals.
hope the flavor of our goods will satisfy the clients who
purchase it And the taste of our goods It will be simple
for you to use social media. They should get in touch
with us and order our stuff. Serg's Chocolate will
sell throughout the Dagupan city area. Serg's
Chocolate will target the youth demographic while
marketing the product. Students from Dagupan City,
Pangasinan, in particular. Serg's Chocolate will
psychologically please pupils who purchase our
product. something that will assist them in reducing
their school-related stress. In addition, to improve
Serg's Chocolate will improve targeting accuracy
(behavioral segmentation). Marketing dependent on
the nature of the business, the state of the economy,
and the level of safety to prevent the spread of
COVID-19, health protocols have been established.
PERCENTAGE OF TARGET
MARKET SEGMENTATION

The proponents surveyed and collated comments

from persons and students from all throughout
Dagupan to find out what they think about the
situation. According to the survey results, 43% of the
target population is elementary, while junior high
school students made up 37% and high school
students made up 20% are students in their senior
year in high school. These are the most important
market segments. Our product is most likely to be
used.
TARGET MARKET PERCENTAGE0

ELEMENTARY PUPILS 43%

JUNIOR HIGH SCHOOL 37%

SENIOR HIGH SCHOOL 20%

TOTAL: 100%
MARKET POSITIONING

The business will adopt a low-cost product with a

high-quality assurance. Quality. In the eyes of
customers or target market, the product is appealing
since they would be able to satisfy their chocolate
cravings with only one recipe/food, hence they are
more inclined to purchase our goods. The proportion
of clients who are unwilling to transact with a new
product supplier is represented by the percentage of
pleased clients (48%) with existing product providers.
Clients who are dissatisfied with their current service
providers and those who are eager to transact with a
new product supplier make up the majority of the
disgruntled clients (52 %).
 PERCENTAGE OF SATISFIED AND UNSATISFIED
CUSTOMERS WITH THE EXISTING COMPETITORS

48%
52%

SATISFIED
UNSATISFIED
MARKETING COLLATERALS

Serg's Chocolate will use marketing collaterals to

streamline sales efforts and establish confidence. The
company will not just focus on advertising, but will
also include and not be confined to traditional
marketing methods such as posters and films. We will
also consistently update on different social media
platforms such as our Facebook page. People would
be able to simply connect and contact our company
via social media sites.
OFFICIAL LOGO
POSTER
FACEBOOK PAGE
SWOT ANALYSIS
The acronym SWOT stands for Strengths,
Weaknesses, and Opportunities. Opportunities,
and Threats, which is a strategy for analyzing
these. There are four aspects to a business. This
analysis is useful in determining the
organizations are influenced by both internal
and external variables. It serves as a guide for a
company or group in making decisions. A
strategy plan to retain and improve their
strengths, identify their weaknesses deficiencies
and identify strategies to develop them, s well as
to recognize the potential that awaiting them
and to limit the danger of threats present in
their environment.
 STRENGTH

Consumers are craving quality in their food.

In today’s food market there is an abundance of foods that are
considered nutritionally-empty, of doubtful origin and made
with questionable ingredients. Ironically enough, this is bringing
consumers to the opposite direction: they now look for quality
more than they have ever done in the past. Consumers are
religiously checking ingredients list, looking for traceable supply
chains and rewarding transparency in a brand.
Craft chocolate (the one made without shortcuts and by expert
hands) perfectly satisfies this demand. The flavorful chocolate,
the luxury packaging, the faces behind the bar, the health
benefits and the strong storytelling all serve well to convince
consumers who are looking for quality.
Craft chocolate matches popular trends (by default).
Some of the most popular trends in the food industry have
started many years ago but are still going strong and in raising
demand. Gluten-free, dairy-free, vegan, soy-free and GMO-
free are the common labels that consumers are increasingly
looking for in their food. The more labels a product is able to
incorporate, the larger the number of its potential buyers.
 WEAKNESSES

Competition is growing, and the market is getting saturated.

The barriers to entry to become a craft chocolate maker are
extremely low. Nowadays, anyone can buy a bag of cacao beans
online, a small conching machine and start making and selling
chocolate. This is how the most successful brands in the craft chocolate
industry actually got started.
This has encouraged many to start a career in chocolate, and has
helped creating the market full of alternatives that we know today.
However, this also made possible for regular people to become
chocolate makers without having to follow a specific learning curve
(and without having to wait for a specific level of expertise before
they started selling on the market). The result is that the offer has
grown more than the demand could possibly ingest. Most consumers
still haven’t found good reasons to spend money on good quality
chocolate. Therefore, hundreds of craft chocolate brands are now
“fighting over” the money of few aficionados.
Profit margins are discouraging.
Making chocolate starting from the beans is expensive. From the
machines and their maintenance to expensive packaging and high
margins to distributors, what remains in the pocket of chocolate
makers is only a small piece of the cake. This is the reason why many
craft chocolate businesses support themselves with other activities, or
manage to break even in the best-case scenarios.
 OPPORTUNITIES
There are new B2B opportunities to tap in.
The appetite for quality food didn’t reach only consumers. Many
professionals outside the chocolate niche are looking to use higher
quality materials for their creations. Whether for personal desire or the
desire to satisfy their clients, they want to raise the standards of their
finished products.
In this scenario, B2B (business to business) opportunities for craft
chocolate companies are expanding. Pastry chefs desire chocolate
covertures with a better flavor and a story to tell. Ice-cream makers
want to make ice-cream that tastes more natural and authentic. Also
cafés and coffee shops are interested in serving higher quality hot
chocolates or to carry craft chocolate products to expand their offer to
the public. The opportunities are truly endless.
More distributors want to carry craft chocolate.
With the rise in popularity of fine food, more distributors and retailers
look forward to carrying craft chocolate brands on their shelves. These
have a fine flavor, a story to tell, a catchy packaging and can be sold
at a higher price point than usual chocolate bars.
Both the big distribution (usually health-focused stores, but not
necessarily) and smaller shops are looking for deals with craft
chocolate makers. There are also chocolate retailers, online distributors
and pop-up stores that specialize in the selling and promotion of craft
chocolate and are increasing in number.
 THREATS
Manufacturers are using craft chocolate terms and storytelling.
Speaking of the power of marketing, big manufacturers are doing all they
can to close the gap between their products and those of higher quality.
They are doing it by using words like “Single Origin”, “Bean To Bar” and
“Craft/Artisan”. They are also including stories from the farm and showing
cacao pods in their packaging. Their products are not necessarily getting
better (although sometimes they are), but the way they are talking to
consumers is changing. And it sounds a lot like the craft chocolate way.
Therefore, they make industrial chocolate (produced on a large scale with
mediocre cacao) look a lot like craft chocolate (produced by small artisans
with the most flavorful cacao in the world). With similar vocabulary and
storytelling, the difference between the two products before tasting will
appear very little, and consumers won’t see the reasons to pay more for
“the same” product.
This new strategy put into place by big chocolate manufacturers is
jeopardizing the future of craft chocolate. The craft chocolate industry will
need to find other strategies outside terminology to mark the difference
with industrial chocolate.
Production of fine flavor cacao might decrease in the next years.
Cacao in general is a very delicate crop to handle. Its fruits need to be
harvested by hand and fermented accurately to reveal the desired flavors
during production. Regarding fine cacao, this crop is subjected to even
more variables, and needs more work, care and attention than bulk cacao.
Unfortunately, cacao farmers are not always seeing a substantial difference
in revenues between selling fine cacao and selling bulk cacao. Their profits
often don’t justify the bigger hassle that a fine cacao crop requires.