Cristy’s Pastillas

Cristy’s Pastillas is owned and supervised by Mrs. Maria Cristina Abu and managed by Ms.
Junelyn Quimanio. They have a total of 5 branches, 2 of it is owned by her sister and the 3 is
owned by Mrs. Cristy. All these branches run very well. But just like any other businesses, they
were also encountering some problems while running their business. Due to increase of prices
and limited supplies nowadays, businesses tend to extend their production by importing raw
ingredients from other municipalities. The supply of carabao’s milk is the problem they’re
worrying about.

Author: Ange Ann L. Flores, Angelito Y. Garcia, Melanie S. Gaspar, Queen Paula R. Guangco,
Mike Hernando

Discipline: Distribution Management

Industry: Retailing

Issues: Limited Supply of Carabao’s Millk

Setting: San Miguel, Bulacan, Philippines, 2022

*Prepared by Ange Ann L. Flores, Angelito Y. Garcia, Melanie S. Gaspar, Queen Paula R.
Guangco, Mike Hernando, BSBA Students of Bulacan Agricultural State College as a basis of

discussion for the subject Distribution Management, under the tutelage of Ms. Ruby Ann C.

Estrella, Instructor I at Bulacan Agricultural State College. The case is not designed to illustrate

effective or ineffective handling of managerial situations.

BUSINESS HISTORY

Cristy’s Pastillas was established in 1994 owned by Mrs. Maria Cristina Abu. It was first manage
by her mother in 1968 and passed with her later on. They have a total of 5 branches. The main
branch is located at Tibagan, San Miguel, Bulacan. The 2 branches are located at San Jose and
Salangan, San Migue, Bulacan. The other 2 branches are owned by her sister located at San
Ildefonso and San Roque. They have their own products which are the Pastillas de Leche with
different flavors, Ube, Yema, Toasted Pastillas, Macapuno, Barciron and Polvoron. They also
sell different delicacies from other places.

THE COMPANY

 VMGO (vision, mission, goals and objectives) of the business establishment.

Vision

They want to satisfy the cravings of their customers.

Mission

To provide good and quality products not just in San Miguel but also in other places.

Goals

To expand the business not just in in San Miguel but also in the whole Philippines and abroad.

Objectives

Their objective is to maintain and improve the quality of products and to provide jobs to people.

SWOT ANALYSIS

Strengths: The uniqueness and consistency of taste and texture of their pastillas which they are
known for.

Weaknesses: Seasonal supply and demand.

Opportunities: Due to customer’s needs and satisfactions, they see the opportunity to expand
their business in to different places. Importing of products from different province.

Threats: Limited supply of ingredients especially carabao’s milk.

MARKETING MIX ELEMENTS

Product

Some products that they offer are listed below:

 Pastillas original
 Yema
 Ube
 Pastillas de leche
 Toasted pastillas
 Polvoron
 Barquillos
 Macapuno

Place

Cristy’s Pastillas store is properly organized and categorized. The have maximized

the space of their store.

Price

Cristy’s Pastillas has discount on other retailers who buy large quantities of products.

Promotion

Cristy’s Pastillas has a +1 promo in every 20 pcs of purchase. They also promote their business
through social media.
PROBLEM/DILEMMA

Cristy’s Pastillas is encountering a problem just like any business establishments. As

the modern world continues to grow; businesses nowadays are trying to cope with

modernization. The main problem of Cristy’s Pastillas is the limited supply of carabao’s milk in
San Miguel. They are worrying about the disappearance of carabao in our municipality later on
because of modern machinery. Due to the lack of supply, they import carabao’s milk from near
municipalities which offer a high price than usual. Also, their problem is the continuously
increasing of price of sugar which forced them to increase their selling price in their product.
Pandemic is also one to consider, the time when we are under quarantine and lockdown, their
deliveries stopped and the sales went down. Mrs. Cristy also forced to decrease the salaries of
her employees and later increase it after crisis. If you were Mrs. Erlinda, what would be your
stand with this issue?

STUDY QUESTIONS

1. How do you deal with issues that arise in your company?

2. What if there is nothing and the carabao's milk supply runs out? How can you create a
product without the most important ingredient?
 CRISTY’S PASTILLAS

Time Context:

 2022

Point of View:

 Mrs. Maria Cristina Abu

Central Problem:

 Should Cristy’s Pastillas innovate their products by the use of processed milk due to
modernization of machinery that causes lack of carabao’s milk or should they still focus
on using carabao’s milk alone despite of limited of supply?

Objectives:

 To make the customers happy with the variety of pastillas they can choose from
 To provide the best quality pastillas with an affordable price
 To provide satisfaction with the customers

Areas of Consideration:

Strengths: The uniqueness and consistency of taste and texture of their pastillas which they are
known for.

Weaknesses: Seasonal supply and demand.

Opportunities: Due to customer’s needs and satisfactions, they see the opportunity to expand
their business in to different places. Importing of products from different province.

Threats: Limited supply of ingredients especially carabao’s milk.

Alternative Courses of Action:

1. Cristy's pastillas should have many source to buy raw materials especially the carabao's
milk because many ingredients are seasonal and limited.
2. Cristy's pastillas is now expanded from different area in bulacan so they have enough
funds to buy raw materials in other places to supply their branches.

Recommendation:

It is normal that every business will encounter problems on the way to succeed. The
common weakness will always be on the side of strength. However, each problem has a suitable
solution to implement. One problem is a lack of a source of raw materials like carabao's milk.
The best actions to take regarding this issue are first to acquire more farmers that can produce
carabao's milk, second to determine if it is possible to buy a carabao and assign personnel who
will take care of it to produce healthy and fresh milk, and third to make a post online through
social media asking for more suppliers of fresh carabao's milk. It may be expensive to do the first
and second recommendations, but expenses are always attached to the business.