DC: YOUR PLACE, YOUR MOMENT

A Strategic Plan

In Partial-Fulfillment of the Requirements for

MHM 506: Strategic Management in Hospitality and Tourism Business

Presented to:

Maria Corazon M. Samorin., PhD.D

Dean and Faculty-in-Charge

College of Business Management

West Visayas State University

Presented by:

Philip Mijares Jr.

Master in Hospitality Management

November 2022
 I. Introduction

DC as MSME: The term micro-enterprise, also known as a micro business, refers to a

small business that employs few people (EFILWC, 2001).

Microenterprise usually operates with fewer than 10 people and their total assets will not
exceed 3 million pesos (DTI, 2021). Microenterprise accounts for the vast majority of enterprises
and contributed a major share to employment and the economy which has been considered the
engines of poverty reduction, employment creation, and business development (Chittithaworn et
al., 2011). The subject of the study is known as DC: YOUR PLACE, YOUR MOMENT”. DC started its
business operation in February of 2021, in which the primary purpose of the business is to cater to
the needs of the people who are strictly restricted to out in the village because of the
implementation of mobility restrictions by the Inter-Agency Task Force (IATF, 2021) due to the
high positive rate of covid-19 patients. The coronavirus (COVID-19) outbreak has not only created
an unprecedented health crisis but triggered serious economic downturns globally. Where in the
Philippines has not been spared and the effects are felt in all its regions (UNDP, 2021) including
western Visayas.

However, Over the past years, food has become a lifestyle. Millions of food pictures are posted
on social media, especially by millennials and Gen Zs-people born in 1981 up to 2012. These
people are always in search of the perfect photograph of Instagrammable food in an aesthetic
setting. The Instagrammable food trend is sweeping the industry, and DC: YOUR PLACE, YOUR
MOMENT is positioned to bring this to the area.

DC: “YOUR PLACE, YOUR MOMENT” is a cafe-restaurant located at Ana Ros Village,
Mandurriao, Iloilo City which identifies itself as a refreshing, elegant, and Instagrammable cafe
restaurant that offers well-presented and good-tasting food at a very affordable price. The time
and attention are given to everything they serve make DC truly unique when looking for quality
food and beverages. Their exceptional customer service which aims to inspire customer loyalty
developed a strong reputation with the clients within its 2 years of operation. The interior design
of the building focuses on the food trend, which DC gladly provides through its fresh-nature, white
aesthetic in the morning, while the place is like a cozy, dreamy haven at night. DC is built around

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the belief that customers always come first. DC’s company culture revolves around its passion for
nurturing an environment that is motivating and progressive for its customers and its employees.

This strategic plan aims to give direction on where to focus DC’s resources to gain the most
opportunities, increase sales and competitive advantage, and provide information regarding
current market trends. It also analyzes DC’s current standing in terms of marketing, competitors,
within the community, and target market. It also includes an evaluation of the business’s internal
strengths and weaknesses, as well as external threats and opportunities. This paper would focus
on DC’s growth strategy, suggest ways on how it could further improve customer relationships,
and recommendation on new products and services targeted to specific customer niches. With
these analyses, evaluations, and recommendations, DC can improve its profitability and stand in
the market.

This paper recommends that DC should rebrand in order to become more relevant, more
competitive, and more profitable in its target market. It’s essential to create a brand that people
will remember, and with the rapidly changing market environment, re-branding would be the
means to keep up and be ahead of time. Its main goal is to keep the brand current and can be a
way to show to the target market that the brand pays attention to the trends within the industry.
Re branding means that DC should redesign all of its marketing materials, including the layout of
the menu, the logo, posters, fliers, the Facebook page, and any other social media platforms.

It is also optimal that the brand should differentiate itself from the rest of the competition in
order to maintain its competitive edge by introducing additional items to its menus such as
pastries, baked goods, vegan and vegetarian options, and dairy alternatives in order to help
customers meet dietary needs. In terms of its packaging, it can opt to switch to sustainable
takeout packaging by using smaller boxes, bags, and containers to be more eco-friendly with its
product packaging for take-outs and online purchases. It can also offer bundle pricing and a
“barkada package” in order to provide more value to the customers, offer more solutions, increase
efficiency, and reduce.

One of DC’s weaknesses is its inactivity in its online platforms which results in a lack of
distinctive and strong branding. It is recommended that they post regularly on their social media
accounts, especially on Facebook and Instagram, or hire social media influencers to attract more
customers once it has publicly announced its re-branding. It can opt to create a TikTok account
and post engaging content that features its menu, food preparation, and the aesthetics of the

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place to expand its reach. Also, to entice potential customers to visit and make a purchase, DC
should retain offering free Wi-Fi to customers, especially to students and those who need a quiet
place to get their work done and are on a tight budget. In order to maintain and improve
customer relationships, it is suggested that loyalty cards should be offered as a way to encourage
them to become repeat buyers and enjoy the benefits of being a cardholder, such as additional
discounts and promos that only loyalty cardholders can use. To increase its customer base, it is
proposed that the brand should participate in various food events or local events in the city, and
form a partnership with other businesses.

II. Research Design and Methodology

A. Research Design

The research design that has been utilized in the study is a descriptive research design that
aims to obtain information systematically describing a phenomenon, situation, or population
(David,2017).

The strategic plan aims to determine the effective strategies to be implemented and
recommended to have competitive advantages in the market.

Specifically, it seeks to answer the following questions:

a. What are the customer’s needs and wants in relation to their changing lifestyle amidst
the pandemic?
b. What are the strategies that DC should adopt and implement in order to cope with the
market trend, technological innovation and continuous development?

B. Methodology

The survey method has been utilized to obtain data to determine the specific needs of the
business (David, 2017). Through this, the data will be simplified and clustered in order to have an
external and internal overview of the business strengths, weaknesses, opportunities and threats
that will be used to identify the needed strategies and recommendations. The data gathering
instrument utilized by the strategist in order to get the point of view of the customers is through
questionnaires with supporting verbal statements of higher management personnel and DC
employees through interviews.

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 C. Scope and Limitations of the Study

This strategic plan has been inspired to use Convenience Sampling by Creswell (2012) to
inquire to the DC customers in identifying their satisfactory needs and wants. The strategist only
included those customers who are present during the time of the visit. Then, a non-probability
sampling has been conducted on the selected participants from higher-level management. In
order to identify the internal status and challenges of the business. Prior to this, the strategist
underwent external analysis of the business, in order to profound and to provide an explanation
with regards to the status of the market industry. Through this, the strategist can determine the
applicable strategies and effective recommendations for the business.
However, this study admits certain limitations. The survey was only conducted within a
month period and only selected those people available during the time of visit. Moreover, the
conduct of the study is also constrained by limited funds wherein only the resources money was
used in completing this strategic plan.

Finally, the strategic plan doesn’t assure the success of the business but rather, it will
enlighten the business to know its strengths, weaknesses, opportunities, threats and customer
perspective. To position itself in a competitive market where profound strategies are needed to
continuously fight the battle for business viability.

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The company’s vision and mission statement indicated below have been gathered through the co-
owners of DC foods and services. It was analyzed, improved, and develop using Fred David’s
Framework.

III. Company’s Vision and Mission

Current Vision Statement: To become the city’s best food service–provide the best food and
service with full satisfaction to its customers through home-felt place, cleanliness, and safety to
the diners.
Criteria Evaluation Analysis Recommended
(Yes or No) Changes/ Addition
Describe the YES The business is aiming Profound strategic planning with
enterprise’s future for being the best food anticipation of the future, while
state service that provides adapting to the digital era.
satisfaction to its
customers.
Indicates when you NO The business has no Revised the vision of the
want to achieve this exact date of fulfillment company and set the date of
state for its vision. fulfillment through formulating,
implementing, and evaluating
business capability.

It is challenging yet YES The business has several Strategize by doing competitors’
attainable competitors within the checks. Advertise and update
area which are more signages in the area for clear
accessible and offer guidance, since it’s quite old.
similar products and
services.
Indicates the YES The business indicates The business should be holistic
enterprise’s customer, what it offers such as and enticing by indicating
market and/or food, place, and service. quality.
product focus
Challenges the people YES The vision is somewhat Retained
of the organization to customer focus. But the
strive for its challenge will be the

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 achievement consistency of execution.

Figure 1.1. Analysis of Vision using Fred David’s Framework

Revised Vision Statement: DC food services as the leading food and beverage provider in the
city by delivering total customer satisfaction through dedication to quality food and beverage,
customer service and ambiance.

Current Mission Statement:

Execute the passion of the restaurant–put smiles on customers’ faces, and satisfy them as they
experience the unique food and services. Create a space that can inspire customer loyalty through
well-trained customer service.

Item Guidelines Presence Analysis Recommended

in the changes/addition
current S
statement
1.Customers Who are the YES The customer Customers in ILOILO
firm’s was mentioned CITY
customers? and was given
the utmost focus
2.Products/ What are the YES Foods and Being a cafe-restaurant
Services firm’s major services have business, the main
products and been included product should be
services? but are not too stated. And the business
specific. should not stop
innovating.
3. Market Geographically, NO The business Geographic specification
where does the located in the of the area or landmark
firm compete? Ana rose for familiarization.
subdivision of
Iloilo, was not
specified.
4. Technology Is the firm NO The business is Retained

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 technology current in
current? technology and
partnering with a
food delivery
company.
5.Concern for Is the firm YES The business is Retained
survival, committed to continuously
growth, growth and expanding its
profitability financial horizon to serve
soundness? a variety of
products to
customers
without losing
quality.
6. Philosophy What are the YES Putting smiles on Retained
basic beliefs, customers’ faces
values, and providing
aspirations, and unique food and
ethical priorities services have
of the firm? been indicated.
7.Self-concept What is the YES Their Aesthetic Retained
firm’s design, homey
distinctive ambiance, and
competence or fair pricing.
major
competitive
advantage?

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 8.Concern for Is the firm YES The business has Retained
public image responsive to an outstanding
social, review on several
community, and social media
environmental platforms such as;
concerns? Facebook, and
Instagram.

9.Concern for Are employees YES Employees are Retained, but

employees valuable assets prioritized and should be
of the firm? valued consistent.
10.Natio Does it commit NO Even though they The business can
n- in nation- sourced their also consider
building building? Coffee beans sourcing its
locally, it was not ingredients from
mentioned in the Local Farmers.
mission statement

Figure 1.2. Analysis of Mission using Fred David’s Framework

Revised Mission Statement: The company is committed to provide the ultimate coffee and
a place to celebrate life’s special moments in Iloilo City through a relentless commitment to
continuous menu expansion, development, and staff training.

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IV. External Analysis

External analysis has been analyzed using macro-perspective through Political, Economic,
Social, Technological, Legal and Environmental (P.E.S.T.L.E) approaches. Through this, small
businesses like DC can be understood in the General Environment of the business industry.

A. General Environment

a. Political Developments

Ease of Doing Business. In compliance with the Republic Act 11032 or the Ease of Doing
Business and Efficient Government Service Delivery Act of 2018, the Iloilo City government
established a Business One-Stop-Shop (BOSS) at the third of the City Hall in the same year
(BaLinkBayan, 2018). In 2021, five BOSS for 2021 Business Permit Renewal were set up across
Iloilo City to ease the congestion and limit the number of people per transaction to minimize
further COVID-19 transmissions. The BOSS has not only made legal transactions for small
businesses faster and safer, but it has also helped them to cut costs as it allowed businesses to
do transactions online.
Minimum wage rates increase. for Region VI (Western Visayas) In compliance with Republic
Act No. 6727 or The Wage Rationalization Act periodically assess the wage rates.

b. Economic Development

Inflation. Rising prices create difficulties for small businesses in the industry. When inflation
increases, small businesses would have to pay more for supplies, raw materials, and employee
costs. There will also be a decline in consumers' purchasing power.

Changing Employment and Unemployment Rate. An increase in the unemployment rate

means that consumers who lost their jobs would have less money to spend, thereby reducing
revenue for small businesses, and an opposite effect when there’s a decrease in the
unemployment rate. However, a reduction in the unemployment rate may threaten newly-
opened businesses, which are considering making a hire.

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Consumer Confidence Level. Consumer confidence and consumer spending have a directly
proportional relationship. An increase in consumer confidence is an opportunity for small
businesses, and a decrease would pose a threat.

Tax Rates. Taxes are challenging for small businesses, considering that an increase means
profit reduction, which, in turn, negatively affects wages, capital investment, and expansion
opportunities. An increase in taxes decreases consumer spending, and there will be a reverse
response to decreasing taxes.

c. Sociocultural Development

Lifestyle. In recent years, hanging out in cafes, especially drinking coffee, has been part of
people’s lifestyles. This behavior is an opportunity for small business café like DC to increase
their sales as prospective buyers increase.

Age composition. Children and seniors are now allowed to go out. Small businesses’ menus
must fit the needs of almost all age groups since older people are likely to drink hot coffee,
while young ones prefer iced beverages. The easing of protocols creates an opportunity to
attract customers of all ages and increase their reach.

Ilonggo Culture. Ilonggo’s tend to try out new places but will not come back once they are
dissatisfied. This is an opportunity for small businesses to maintain and expand their customer
base through different offerings like social media postings or vlogs or just being consistent with
their customer service and the quality of their food and beverages to encourage patronage that
makes people come back.

Changing Consumer Preferences. As consumers’ tastes change due to various factors, sales
of small businesses like our subject of the study may decrease. However, it is an opportunity for
expansion in terms of innovating products or improving their service to regain their losses.

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Health Consciousness. The pandemic made people realize that health is wealth; thus, more
people prioritized eating healthy. This behavior is a threat to small businesses since their menu
has few healthy options for these people, but it is also an opportunity to add healthier
alternatives.

Diet Restrictions. Small businesses provide no warnings for their products' ingredients that
may cause allergies or other health conditions to their customers. This threat can lead to
unsatisfied buyers and decreased sales.

d. Technological Developments

Social Media Platforms. Establishing a brand on various social media platforms helps reach a
wider audience. It serves as the primary marketing tool for the business and attracts potential
customers with its content promoting its products and services. Customers' positive reviews
create a buzz in the online community and increase the business's credibility, which further
promotes the brand and is a great way to capture the attention of new customers.

Food Delivery Applications. Due to the pandemic, there was an increase in the usage of
food delivery services because there was a time when businesses only allowed take-out and
deliveries due to strict quarantine restrictions (IATF, 2021). In order for the customers to offset
their cravings they use food delivery applications, to book their orders. In this way, it is safer
and more convenient for customers.

Online Payment Methods. Nowadays, some people prefer to pay using their e-wallets or
other online methods for convenience and fast transactions. For now, small businesses only
accept mobile payments using GCash. However, there is also a risk that comes with accepting
online payments. Sometimes, the server might be down, so small businesses cannot verify
payments, and customers can use this opportunity to fake an online banking receipt and scam
the business.

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e. Legal Developments

Observance of Strict Safety Health Protocols. The pandemic has introduced a lot of new
policies to the food industry. Among these policies are the Administrative Order No. 2021-
00431 and DTI-DOLE Joint Memorandum Circular No. 2020-04-A2, which mandated specific
health standards in indoor and outdoor dining services. This has required restaurants to follow
a strict checklist of physical setup controls, administrative controls, and other policies such as
maintaining thorough sanitation systems.

Vaccination Resolutions. All private or public entities must ensure the complete vaccination
of their on-site employees, according to Resolutions No. 148-B and 149. These changes were
additional costs to conducting business, but small businesses have a quick response to the
policies, through a 100% fully-vaccinated workforce, this allowed small businesses to gain a
competitive advantage amidst the height of the pandemic. They were among the few cafes that
thrived during those periods by providing a safe dining experience to customers.

Ease of COVID-19 Restrictions. Starting March 10, Iloilo was among the cities that the
Inter-Agency Task Force (IATF) authorized to be at Alert Level 1, which was extended until the
end of May (The reportr team, 2022). With Iloilo City placed at Alert Level 1, businesses can
freely utilize their pre-pandemic indoor and outdoor seating capacities while observing all health
and safety protocols. More seats mean more customers accommodated, which can vastly
increase business sales. However, should there be a surge again after May and IATF decide to
heighten the restrictions, indoor accommodation will be cut off by 50%, while outdoor capacity
will be capped at 70%.

Proposal to Implement Four-Day Work Week. The National Economic and Development
Authority has proposed the 4-day work week with 10 hours a day scheme. Since March, the
entire country has been awaiting the decision from former President Rodrigo Duterte. There
have been no official statements yet, but the proposed policy can potentially affect small
businesses operations. They will have to decide which day(s) to forgo or how to manage their
human resource once the new workweek scheme is approved. In light of the recent May 9
election results and the silence of the Malacañang palace so far, this topic is under many

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vulnerabilities as of writing.

f. Developments in the Natural Environment

Climate Conditions. With the country’s tropical climate conditions, it is undeniable that small
businesses will incur additional cooling costs, particularly during the summer. However, with the
country’s wet and dry seasons, this can also be an opportunity to create seasonal menus,
especially during the holidays.

Natural Calamities. Calamities such as typhoons, earthquakes, and other disasters can
damage the facilities and equipment, resulting in an additional financial burden for the business.

Geographic Location. The increasing transportation costs nowadays can influence customers;
hence the brand has to exert greater effort to establish its brand and focus on customer
retention.

COVID-19 Pandemic. The threat brought by the COVID-19 virus limits business operations,
which can take a toll on small businesses sales.

African Swine Flu. On the 24th of November, the first case entered Iloilo City. Although it was
detected early it will still be a threat to small businesses, especially the customers who are
health conscious.

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 B. External Factor Evaluation Matrix

External Factor Evaluation DC Foods and Services

Weight Rating Weighted Score
Opportunities
Changes in lifestyles and market trends 0.13 4 0.52
Increased student population post-
pandemic (Face-to-Face) 0.11 4 0.44

Business Expansion
0.04 2 0.08

Food delivery applications 0.08 4 0.32

Ability to innovate products 0.06 3 0.18

Participating in the local food festival 0.05 2 0.10
Threats
Reliable methods of transportation 0.12 3 0.36
The inflation rate increased by 8% in
western Visayas 0.09 3 0.27
A new variant of corona virus spread 0.07 2 0.14
Newly open coffee shop business near
the main road 0.11 4 0.44
Unemployment rate increases to 4.7% 0.06 2 0.12
No recent construction of housing within
the village 0.08 1 0.08
1 3.05

Figure 2. External Factors Evaluation Matrix

C. Summary and Conclusion

Through this general environment and external analysis with a macro-perspective, we’re able to
identify the following:

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 a. Opportunities

Although it poses some challenges, DC's location is also an opportunity to have a steady,
captured market within Ana Ros Village, which can help spread the news about the cafe
through word-of-mouth. Social media marketing should be easy enough in this digital age as it
bears lower costs than traditional promotional materials. Aside from that, the Internet has
enabled a more accessible communication system, which could help DC reach out and initiate
partnerships or collaborations with other brands, influencers, and social media content creators.
The "review" feature available on their own Facebook page and the comment sections in their
post can help inform DC on innovating their products better to suit the ever-changing taste and
preferences of consumers. The prevalence of online payment methods and the developments in
food delivery applications can help DC reach more people inside or beyond Mandurriao. Also,
Iloilo City's compliance with RA 11032 or the establishment of a Business One-Stop-Shop works
in favor of the cafe should they ever decide to open another branch in a more strategic
location. Works in favor of the cafe should they ever decide to open another branch in a more
strategic location.

b. Threats

The COVID-19 pandemic stands as a major threat to DC as any surge in cases can immediately
affect the consumers' attitude about dining out or modify the structure of businesses to comply
with government restrictions. Aside from this, the cafe business has relatively lower barriers to
entry, which means that DC can expect more and more competitors to enter the market. The
existing competitors alone present similar but differentiated products with a price range at par
with DC. This implies that DC should continuously improve its marketing mix, especially its
product, pricing, and promotions, to strengthen its value proposition. Furthermore, DC's
offerings are quite dependent on the availability of ingredients in the market, such as coffee
beans, sugar, flour, and rice–which means that climate conditions in the Philippines can
threaten its pricing strategy of DC. Any economic uncertainty like inflation rates can also
implicate changes to the business.

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V. Internal Analysis

A. McKinsey 7s Model

The basic premise of 7’s management is that there are seven internal elements of an
organization that need to be aligned so it can be successful. The following are the seven
elements that are categorized as “hard” or “soft” of DC Food and Services.

a. Strategy

People in Ana Ros Village living near the cafe are the DC's primary customers, especially during
this pandemic. Their services, especially the place's interior, target the younger generation who
values aesthetically pleasing and Instagram-worthy cafes and restaurants. With a price range of
not more than ₱300, even students on a budget fall under their target market up to middle-
class individuals. DC's homey vibe and affordable menu also attract groups seeking the perfect
place for get-together. Their menu is tailored chiefly for coffee lovers, milk tea trend-hoppers,
and specialty coffee drinkers.

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Moreover, Using "Kaon Ta, Iloilo", a Facebook group with over 168,000 members noticed and
commended the business. Later on, it has become a place where people can relax and enjoy
the cozy atmosphere while having a cup of coffee. The café is known for its Instagrammable
interior design that sets the ambiance and makes customers perceive the brand in a favorable
light.
Having this strategy, DC foods and services is a promising contemporary business that offers a
friendly atmosphere with favorable prices to their customer and help them to reclaim their life
amidst the pandemic.

b. Structure

DC Cafe is classified as part of a micro-enterprise under the specification of the Department of

Trade and Industry (DTI, 2021). In which the business should not exceed its assets of 3 million
pesos value and should not have more than 9 workers. For this reason, it will be easier to
reposition the people through their expertise and knowing the available resources of the DC
café that will be relevant to its market industry.

Manager - Mr. Ron Encio, is one of the co-owner of the business as well as the manager, he
is a former operations manager of several restaurants in Iloilo for many years and currently
working as a faculty in one of the prestigious universities in Iloilo.

Assistant Manager - Sean Marcus Naldoza, former Huawei Agent.

Cook - Mr. Johnrey Sungcayawun, former assistant cook of Soi restaurant and Vikings
buffet. National Certificate II: Holder for Cookery.

Assistant cook - Maricel Mayormente, former clerk of Sarabia jewelry.

Barista/Cashier - Ms. Valeria llamado, former supervisor of Grillers and head captain
barista of Mesa Philippines. National Certificate II: holder for food and beverage.

Server - Reidmarch Endencio, former server and bellman of days hotel.

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 Maintenance & Dishwasher - Kevin Hendrix Cabrera, First Job, working student,
currently taking up BS Electronics.
Stated below is the abstract of the organizational structure for DC café.

Joseph Cañete
Owner

Ron Encio
Manager/Co-owner

Sean Marcus Naldoza

Assistant Manager

Johnrey Sungcayawan
Valeria Llamado Reidmarch Endencio Kevin Hendrix Cabrera
Cook
Barista/Cashier Server Maintenance/Dishwasher

Maricel Mayormente
Assistant Cook

Figure 3.DC cafe Organizational Structure

c. System

DC is using a Point-of-Sale (POS) that can be personalized and help them in their daily

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operation. This gives the business a smooth and easier transaction because of less time
consumption. Despite being included as a newly established
business in Iloilo City, DC are fully aware of the benefit of
having a system that will help them with their daily
transactions, inventory, target sales, and cost control.
Uniwell POS Australia has been developing point-of-sale
solutions for a wide range of Australian hospitality and food
retail venues for over 20 years. They understand the POS and
technology requirements of modern food service and pride
themselves on providing robust, reliable, and easy-to-use
solutions that bring tangible benefits to the business (SOURCEFORGE, n.d).
In terms of contemporary society, the business adopted online payment transactions and was
also able to partner with food delivery applications such as; Maxim & Food Panda to book their
orders. In this way, it is safer and more convenient for customers.
Through these systems, DC was able to bridge the gap between the customer and the business
by letting them feel extraordinary wherever may they be. As well as align with its mission,
where DC is “committed to celebrate life’s special moments”.

d. Style

DC actively responds to the call for quality food and services, health and safety, value,
cleanliness, and customer satisfaction. They prioritize consistency and provide their customers
with a high level of satisfaction by serving them fresh from-the-oven food with each ingredient
from the same trusted source at affordable prices. In addition, DC adheres to health and safety,
value, and cleanliness by following Administrative Order No. 2021-00431 and DTI-DOLE Joint
Memorandum Circular No. 2020-04-A2, which mandated specific health standards in indoor and
outdoor dining services.
Therefore, this has required DC to follow a strict checklist of physical setup controls,
administrative controls, and other policies such as maintaining thorough sanitation systems.

e. Staff

DC is considered a small business within the village, basically, it only composes of 7 employees.

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Following the specification of the Department of Trade and Industry (DTI, 2021) a business that
usually operates with fewer than 10 people with a total asset of not more than 3 million will be
considered a micro-enterprise. The manager is the one who signs and checked their hardbound
daily time record (DTR) and acts as the human resource (HR) of DC foods and services. DTR of
the employee will be the basis of how much is going to be their salary.
The business was able to establish a good atmosphere and camaraderie with its people, causing
DC of having a high retention rate for their employees. Continuous motivation helps significantly
influence the consumer purchasing behavior of DC customers.
With these natural behavior service employees, in particular, can improve sales by upselling,
conflict resolution, and creating a welcoming environment all of which are done through
satisfactory customer engagement observed usually during the alternative evaluation of the
decision process.

f. Skills

The business has been Officially registered as DC Food Services at the beginning of 2021, DC:
Your Place, Your Moment started their operations on February 18. In spite of being a newly
established business. Knowledge and training in the food industry have been the entry point of
all DC employees.
The employees are encouraged and supported by the business to take several scholarships
offered by Technical Education and Skills Development Authority (TESDA) relating to food and
beverage services to gain a certificate and enhance their knowledge and skills.
DC is a business that allows its aspiring employee to balance training, self-growth, and skill
development. Through this business behavior and opportunity, employees are more motivated
and satisfied.

g. Shared Values

The business values revolve around customer-eccentricity and align with its clearly stated
principles about its vision and mission. Customer satisfaction and customer value are its most
valued philosophy, followed by service excellence and diversity and inclusion, which are values
that support and strengthen the business’s core values. Accountability and continuous
improvement also showcase DC’s relentless effort to betterment and responsibility to breed
trust among its customers and employees. All these values serve as a guiding philosophy to

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serve employees, customers, and the broader community of DC.
● Customer satisfaction
● Customer value
● Service Excellence
● Diversity and inclusion
● Accountability and continuous improvement

B. David’s Internal Audit Analysis

Through internal audit analysis DC will understand business advantages and disadvantages,
customer behavior, competition and motivation.
Motivation
DC aims to satisfy its customers with a wide range of quality yet affordable food and beverages.
It also seeks to provide a comfortable yet safe dining experience. It is convenient not only for
the residents of Ana Ros Village but also easily accessible to outside customers through its fast
and reliable food delivery service. DC also delivers the want of the younger generation for
Instagram-worthy ambiances and serves as a place of relaxation for those wanting to unwind.
Consumer Behavior
Following the five steps in the buyer decision process, the persons involved in the
purchase decision of DC customers are the customers themselves, the service employees or
staff, and third-party influencers such as bloggers, vloggers, and even previous customers who
make use of word of mouth to promote the business. All these participants take part in one or
more stages of the consumer decision process of DC customers. Customer service and
employee behavior significantly influence consumer purchasing behavior of DC customers.
Service employees, in particular, can improve sales by upselling, conflict resolution, and
creating a welcoming environment – all of which are done through satisfactory customer
engagement observed usually during the alternative evaluation of the decision process.
Customer service experience – whether favorable or not – has a significant impact on customer
retention and loyalty, especially for a cafe restaurant like DC. Previous customers and other
social media influencers also have a substantial impact on consumer trends in demand for
specific products through their thoughts, attitudes, and opinions. Ultimately, the customers of
DC are the ones who make the decisions in buying the products that the café restaurant offers.
The decision, however, is affected by other influencers and internal and external factors present

21
in the surrounding environment of the customers.
From a cultural standpoint, coffee shops have evolved into a focal point and ideal setting
for social contact, providing individuals with a space to connect, converse, write, read, or simply
pass the time, whether with or without company. The laid-back lifestyle and culture of Ilonggos
is one of the cultural factors that might influence the purchase decision of DC customers. With
Ilonggos inclination towards a laid-back lifestyle, convenience, comfort, and satisfaction may be
their main concerns when choosing a coffee shop. Due to their involvement in the community,
coffee shops rely heavily on word-of-mouth marketing to promote their products and services.
The effect of a reference group can spread to other customers, explaining the behavior of
visitors to a new location, such as seeking information when they are unsure. Other groups
such as membership, aspirational groups and social networks that the customers belong to also
influence their purchase decision, especially with the help of online networks and media sites.
There are also many personal factors that affect the consumer buying behavior of coffee shop
customers. The nature of an individual's employment has a direct impact on the products they
choose for themselves. An individual's purchasing power is directly proportional to his monthly
income or earnings. As the coffee shop industry greatly depends on personal preferences of
customers, personality and lifestyle can also significantly influence the purchase decision of
customers. Perceptions, attitudes, and beliefs can heavily influence the purchasing decisions of
consumers. With DC’s close relations with the community it belongs to, the image consumers
project onto DC’s products and services may be influenced by the community. This brand image
of DC that the customers created with the influence of others can affect their perception and
opinions towards the café hence it is also one of the psychological factors that might influence
their purchase decision.

Buying Decision Behavior

Having competitors with almost the same services located near the cafe makes the
buying decision behavior of first-time DC customers dissonance reducing. Consumers engage in
dissonance-reducing buying behavior when they are highly invested in acquiring an item but
cannot distinguish between brands. However, it must also be noted that as these customers
become accustomed to the brand and as DC gains loyal customers and increases its customer
retention, they can develop habitual buying behavior. Customers engage in habitual purchasing
when they make multiple purchases of a brand without significant engagement in the decision-

22
making procedure. The product is seen as a commodity and offers little differentiation from its
competitors.
Pollution Control
The business is located inside a subdivision where air and noise pollution are minimized.
This zone can create an opportunity to build a small green space within the cafe that can serve
as a corporate social responsibility activity for the business. DC’s location can be a competitive
advantage, especially to health-conscious and noise-sensitive customers.

Product Usage.
Most DC customers are students coming to unwind after a long school day, satisfy their
hunger or cravings, or spend time with their families. The cafe is busiest after work or school
hours and on weekends. Customers can also choose from a variety of menu options, as the café
offers a selection of food items, snacks, and beverages. Although most of DC's customers dine-
in, especially after the ease of pandemic restrictions, customers may also order online via the
brand's Facebook page and delivery services

Consumer Satisfaction.
The cafe lacks feedback forms and other necessary measurement tools. DC can only
determine its customers' satisfaction if they suggest the brand to a friend and if they publish
positive reviews on DC's Facebook page.
A cozy and relaxing atmosphere, super affordable prices, quality food and services, and
accommodating staffs are some of the general comments of the customers about the cafe that
are posted on its FB page. Reading through the reviews from the first up to the recent one,
there are no negative reviews about the cafe's products or services. However, there are also
areas in which the cafe still lacks, such as free internet connection, which is essential to
students and professionals alike. With all these, it can be said that consumer satisfaction in DC
can still be improved. This also stresses the need to collect customer feedback to measure
customer satisfaction accurately.

Marketing Channel Analysis

DC produces its goods and sells directly to consumers without intermediaries, such as
wholesalers and retailers. However, they use other delivery services such as Maxim and Palihog

23
when they deliver outside Ana Ros Village. They also have their personal delivery rider for
orders within the subdivision.
Competitor Analysis
There are several brands in the area offering almost the same services as DC. The
identified direct competitors of DC are Baristars Cafe Diner+Kitchenette, My Style Cafe, and
Kringkols & Ko. Cafe, all of which are located right outside the entrance of Ana Ros Village.

Baristars Cafe Diner+Kitchenette has a parking space, and offers a 3-in-1 service (cafe,
diner, kitchenette). Among the three, this is by far the most competitive against DC Cafe,
offering the same items such as pasta, sandwiches, combo meals, and drinks. Aside from the
advantageous location along the main road, their place is also quite spacious, well-lit, and cozy.

They are also the most active Facebook page compared to the other two cafes that were
mentioned. The lack of distinctive branding and the limited selection in their menu are two of
Baristars’ biggest weaknesses

Figure 4.1. Menu and Interiors of Baristars Cafe Diner+Kitchenette

Baritar's Café Diner

Critical Success DC Café
Weight +Kitchenette
Factors
Rating Score Rating Score
Target Market 0.15 2 0.3 4 0.6
Quality Food 0.14 4 0.56 2 0.28
Quality Service 0.08 4 0.32 3 0.24
Empowered Staff 0.1 4 0.4 2 0.2

24
 Customer Loyalty 0.13 2 0.26 4 0.52
R&D 0.12 3 0.36 4 0.48
MIS 0.07 2 0.14 3 0.21
Store Location 0.09 1 0.09 4 0.36
Price
0.12 3 0.36 1 0.12
Competitiveness
Total 1 2.790 3.010

Figure 4.2. CPM for DC and Baristars Cafe Diner+Kitchenette

The Critical factors total average score for DC and Baristars Cafe Diner+Kitchenette shows that
the store location has a significant relationship affecting the target market and customer loyalty
of DC which are huge disadvantages. Leaving them with a score of 2.79 which is lower than
Baristars Café Diner+Kitchenette which garner a score of 3.01.

My Style Cafe specializes in mochi production and accepts bulk orders for special occasions.
Like DC, they offer a very wide variety of drinks from milk tea and frappes to iced and hot
coffee. Although their mochi products could’ve been a great edge for them to distinguish
themselves, their other marketing mix such as place and promotion does not reflect this
advantage well. The interior of their place is not exactly comfortable for people who want
privacy, and the food plating is rather plain and unpalatable.

Figure 4.3. Menu, Interiors, and Product Offerings of My Style Café

25
 Critical Success DC Café My Style Café
Weight
Factors
Rating Score Rating Score
Target Market 0.15 2 0.3 3 0.45
Quality Food 0.14 4 0.56 3 0.42
Quality Service 0.08 4 0.32 1 0.08
Empowered
0.1 4 0.4 1 0.1
Staff
Customer
0.13 2 0.26 1 0.13
Loyalty
R&D 0.12 3 0.36 2 0.24
MIS 0.07 2 0.14 2 0.14
Store Location 0.09 1 0.09 3 0.27
Price
0.12 3 0.36 2 0.24
Competitiveness
Total 1 2.790 2.070

Figure 4.4. CPM for DC and My Style Café

The Critical factors total average score for DC and My Style Cafe shows that the quality of food,
quality of service and empowered staff of DC gives them the advantage. Garnering a score of of
2.79 which is higher than My Style Cafe which only garner a score of 2.07.

26
Kringkols & Ko. Cafe offers freshly brewed coffee and has a wide variety of pastry offerings.
The ingredients they used – coffee beans and tea leaves – are sourced from local Filipino
farmers. With a very affordable price range Php. 15 - Php. 140, the cafe also offers free WiFi to

customers. Kringkols & Ko competes with the DC’s idea of serving a homey vibe and aesthetic.
Like My Style Cafe, they also have limited space and inactive social media pages. Their menu is
not available in their Instagram or Facebook, proving as a marketing weakness.

Figure 4.5. Interiors of Kringkols & Ko. Café

Critical Success DC Café Kringkols & Ko. Café

Weight
Factors
Rating Score Rating Score
Target Market 0.15 2 0.3 1 0.15
Quality Food 0.14 4 0.56 1 0.14
Quality Service 0.08 4 0.32 2 0.16
Empowered Staff 0.1 4 0.4 3 0.3
Customer Loyalty 0.13 2 0.26 3 0.39
R&D 0.12 3 0.36 1 0.12
MIS 0.07 2 0.14 1 0.07
Store Location 0.09 1 0.09 2 0.18
Price
0.12 3 0.36 4 0.48
Competitiveness
Total 1 2.790 1.990

Figure 4.6. CPM DC and Kringkols & Ko. Café

27
The Critical factors total average score for DC and Kringkols & Ko. Cafe shows that the quality
of food, quality of service and empowered staff of DC gives them the advantage. Garnering a
score of 2.79 which is higher than My Style Cafe which only garners a score of 1.990. It was
also identified that despite Kringkols & Ko. Café is having lower pricing with their product than
DC, it is still a huge factor in the business to consider quality and empowered staff through
customer service.

a) Management audit

The management of DC Foods and Services is responsible for the preparation and fair
presentation of the financial statement to the Bureau of Internal Revenue declaring the income
monthly and annual income of the business, through income BIR based on the 8% tax. Other
tasks of the management also include payroll, cost control, inventory, and standard safety
procedure validation.
In preparing for the financial statements, the management is responsible for assessing
the business’s ability to continue disclosing, as applicable matters related to going concern, and
using the going concern as the basis of accounting unless management either intends to
liquidate the business or to cease operations or has no realistic alternative but to do so.
Lastly, the owners included in the management team are responsible for overseeing the
company’s financial reporting process. They also review and approve the financial statements
and submit the same to the members.

b) Marketing Audit

The marketing team includes 3 people, the 2 owners named, Mr. Ron Encio his uncle
Joseph Cañete, and the manager. The social media account which serves as the main source of
advertisement of the business has been established in the year 2021, which is prior to their
business launching date. The social media account also functions as a mode of communication
if a customer wanted a delivery within the AnaRos village the product is catered to by the
Facebook group named “Lihog-Padala Rider” which composes of local motorcycle riders in Iloilo.
In addition, social media is functional if there were complaints and queries a person needs.
In partnership with several delivery applications such as; Maxis and Food Panda, DC food

28
and services were able to bridge the gap, especially during the hike of the pandemic when the
Inter-Agency-Task-Force, (IATF, 2021) Resolution No.2 in partnership with the local
government unit (LGU) declared and implemented the strict compliance in accordance to a
mobility restriction.
However, the aforementioned food delivery application charges restaurants 25% to 30%
commission in every transaction. On the part of the customers, it gives them the power to think
twice if they are going to continue the placement the of order or rather not.

c) Financial Audit

DC Cafe’s 2021 Income Statement has annual gross sales of Php 2,739,779 and a net
income of 1,450,311 which shows a profit margin ratio of approximately 53%.

Statement of Comprehensive Income

As of December 2021

Sales

Gross Sales 2,739,779

Cost of sales (880,368)
Gross Profit 1,859,411

Expenses
Wages expense 338,820

Marketing expenses 43,880

Utility and Bills 24,500

Other expenses 1,900

Total Expenses 409,100

Net Income 1,450,31

In 2022, DC should reach a net income of Php 2,000,000 in order to maximize its growth
potential.

29
 During the first quarter of 2021 amidst the pandemic, DC Cafe had Php 960,000 gross
sales. Their lowest sales were at Php 480,000 in the 4th quarter. To achieve the financial goals
stated above, DC Cafe should double their last quarter’s sales to redeem their initial gross sales
in 2021, and maintain this value for the whole year.
In order to build and hold a position in this very competitive industry, DC will need to
dedicate an annual increase of its previous marketing expenses which deem ineffective. The
budget will ensure that DC will continuously improve, evolve, and develop its current marketing
strategies to remain distinctive and relevant. We expect that wages will eventually increase over
the years due to economic changes. As DC’s operations are assumed to gradually scale up, their
bills and utilities are expected to rise as well in the following years.

Detailed Marketing Budget (For 1 year)

Social Media Marketing

Facebook page boost 2,000

MOMENTum spoken word poetry contest 10,000

ShareYourMEMEent 1,000

FEED Your Moment Customer of the Month 2,000 15,000

Promotional Materials

Lay-out artist fee (logo, menu, pub mats, etc.) 10,000

Printing and distribution of fliers & posters 5, 000

Themed decorations 5,000

Books and board/card games 5,000 25,000

30
Loyalty Programs

Promotion for #FeedtheChildrenMoment 5,000

Membership loyalty cards 5,000

#FightProcrastinatingMoment Student Discount 5,000 15,000

Events and giveaways

YourDinagyangMoment talent fee 15,000

FREEbiesMoment 2,500

yourMOMent 2,500 25,000

Sponsorship 20,000

Total: 100,000

C. Internal Factor Evaluation Matrix

After evaluating the firm using The McKinsey 7s model and David’s internal audit, below is the
list of internal strengths and weaknesses of DC presented using the Internal Factor Evaluation
(IFE) matrix. Corresponding weights are assigned per internal factor, and the firm’s rating
corresponding score is also indicated. The reason for giving the firm such rating per internal
factor is also provided.

Internal Factor Evaluation DC Foods and Services

Weighted
Weight Rating Reason for Rating
Score
Strengths

31
 A rating of 4 was given to DC because it
strictly comply with the local guidelines
Safe dining experience and safety health protocols. Thermal
scanner and alcohol dispenser was
0.09 4 0.36 provided at the foot of the store.
DC was given a rating of 4 because of
Aesthetic and spacious its aesthetic store layouts and interior
store design design and how affects the whole
0.13 4 0.52 outlook of the business.
Friendly and A rating of 3 was given to DC for their
accommodating staff 0.07 3 0.21 friendly and accommodating staff.
Wide selection of
affordable and high- A rating of 3 was given to DC for the
quality food and affordability of product without affecting
beverages 0.1 3 0.3 the quality.
DC was given the rating of 4 because it
Relaxing and vibrant
put guest in good mood through setting
atmosphere
0.11 4 0.44 up right ambience.
A rating of 2 was given to DC for
Online payment option
0.06 2 0.12 adapting to online payment; Gcash

Weakness
DC was given the rating of 4 due to its
Not easily accessible geographical location, store is situated
location inside Anaros Subdivision which is not
0.14 4 0.56 very accessible.
DC was given the rating of 2 because
Limited budget for they only rely on social media
marketing advertising such as Meta. Which is a
0.12 2 0.24 minimal tool as marketing strategy.
Inactivity in online 0.04 3 0.12 A rating of 3 was given to DC as they
platforms are not actively posting in online

32
 platform to promote awareness that will
lead to increased traffic.
A rating of 3 was given to DC as
Lack of distinctive and business is still new, and this affect the
strong branding distinction of business when incomes to
0.08 3 0.24 strong branding.
DC was given a rating of 2 since they
Limited local
don’t have a partnership with a supplier
distribution networks
0.06 2 0.12 that deliver the goods.
1 3.23

Figure 5. Internal Factors Evaluation Matrix

Offering quality food and services continues to be the main value of DC. With this, it quantifies
the importance of DC in the contemporary business industry. From the aesthetic layout of store
design, and relaxing vibrant atmosphere to safe dining. These, without a doubt, are the
strengths of DC that are relevant to be highlighted. On the other hand, location and branding
are the main factors affecting DC which cause them to have the aforementioned weaknesses.
In addition, DC food and services are the main income generator of the business which means,
continuous innovation and following safe lifestyle should be strictly followed. Amidst the
uncertainties and challenges brought by the pandemic DC consciously adheres to business
protocols demanded by the government.

D. Summary and Conclusion

Through this internal audit and internal analysis, we’re able to identify and specify the
following:

a. Strengths

The fully-vaccinated workforce of DC Café is one of its advantages during the height of the
COVID-19 pandemic. It contributed to their goal of providing a safe dining experience aside
from their efforts to comply with the local guidelines and safety health protocols strictly. On
January 13, 2022, the cafe even offered a limited-time, single receipt, 10% discount to walk-in

33
customers who can present their booster shot card. This showed how much DC valued the well-
being of their customers, and they were able to capture the loyalty of a few individuals who
needed a place of comfort when only a few shops remained operating. DC Cafe has established
some strong points. These comprise their attractive store layout and interior designs, satisfying
food and beverages that are relatively affordable, the wide selection of their menu, the
availability of online payment options, and their friendly and accommodating staff. These
internal factors can easily distinguish DC from the rest of the competition in the market.
Moreover, DC’s big establishment and vibrant atmosphere mean that aside from catering to
walk-in customers, they also have the opportunity to host events such as birthdays and other
special celebrations.

b. Weaknesses

One of the main challenges that DC faces is its location. As their establishment is located at the
heart of Ana Ros Village, going there would require customers to either go with their private
vehicles or commute with a tricycle. Either way, this has some negative implications because
some people may get demotivated and choose nearer or more accessible cafes in the city. The
limited budget for advertising is not also helping DC popularize its place and the superior value
it can give. Their Facebook page is the only way they utilize to establish a social media
presence, yet this is also not that effective in showcasing their strengths. The attractiveness
and lack of cohesiveness of the promotional materials do not help build the totality of what DC
is about and its values. These reasons are all attributable to the weak branding of DC, starting
with their not self-defining and distinctive company logo. Lastly, the lack of partnerships with
famous food delivery services such as Grab is a weakness that decreases brand awareness and
sales.

VI. Strategy Formulation

DC foods and services have undergone several analyses and audits for the strategist having raw
data to use in determining and formulation a strategy that will be effective and relevant to
apply in strategic planning.

A. SWOT (Strengths, Weaknesses, Opportunities, Threats) Matrix

34
Strengths Weaknesses

35
 Internal
External
Opportunities
1. Changes in lifestyles and
market trends
2. Increased student
population post-pandemic
(Face-to-Face)
3. Business Expansion
4. Food delivery applications
5. Ability to innovate products
6. Participating in local food
festival
1. Safe dining experience 1. Not easily accessible location
2. Aesthetic and spacious store
design 2. Limited budget for marketing
3. Friendly and accommodating
staff 3. Inactivity in online platforms
4. Wide selection of affordable
and high-quality food and
beverages 4. Lack of distinctive and strong branding
5. Relaxing and vibrant
atmosphere 5. Limited local distribution networks
6. Online payment option
S.O. Strategies W.O. Strategies
Online Menu Optimization
(Product Development) (S4, O1,
O5) Offer a discount to students (Market Penetration) (W1,
O2)
Start Café Hopping program as
part of Café Tourism (Market
Penetration) (O1, O3, O6, S5) Generate Hashtag Campaign for better reach (Market
Penetration) (W2, W3, W4, O1, O2, O6)
Season drinks/deals specials on
some important Holiday (Product
Development) (S4, O1, 05) Collaboration with Local Food Festival - Iloilo Coffee
Festival (Market Penetration) (W2, W4, 06)
Increased product line, Offer Milk
tea as an alternative to coffee
(Product Development) (S4, O1,
O5)
Offer a discount to students
(Market Penetration) (S4, O2)
Partner with Food Delivery
Application (Market
Development) (S1, S4, S6, O1,
O4)
36
 Threats
1. No Reliable methods of
transportation
2. Inflation rate increases by
8% in western visayas
3. New variant of coronavirus
spread
4. Newly open coffee shop
business near the main road
4. Unemployment rate
increases to 4.7%
The strategies arising from the SWOT Matrix may be categorized into the following:
 Market Penetration
 Market Development
 Product Development
B. Strategic Position and Action Evaluation (SPACE) Matrix
Internal Strategic
Position
Competitive Advantage
(-6 worst, -1 best)
Product Quality
Technological Know-How
Market Share
S.T. Strategies W.T. Strategies
Alfresco and Safe dining to
minimize virus spread (Market
Development) (S1, S2, S5, T3) Partner with Local Tricycle association (Market
Penetration) (W1, W4, T1)
Employee professionalism and
efficiency with customer value Daily advertising of DC in social media platform (Market
(Market Penetration) (S3, T4, T5) Penetration) (W2, W3, W4, T4)
Contactless payment (Product Loyalty card for customer (Market Penetration) (W1, W4,
Development) (S6, T3) W2, T4)
Partner with local supplier (Market Penetration) (W5, T2)
Accept On-the-Job Trainee (OJT) (Market Penetration)
(W2, W3, W4, T5)
Figure 6.1. SWOT Matrix
Space Matrix for DC Iloilo
Rating External Strategic Rating
s Position s
Industry Strength
(+1 worst, +6 best)
-2 Growth Potential +4
-3 Ease to Entry +4
-5 Capacity location +4
37
TOTAL -10 TOTAL +12
AVERAGE -3.33 AVERAGE 4.00
TOTAL X AXIS SCORE 0.67
Financial Strength Environmental Stability
(+1 worst, +6 best) (-6 worst, -1 best)
Cash Flow +3 Rate of Inflation -5
Working Capital +4 Technological changes -2
Price range of competing
Risk Involved in business +4 products -3
TOTAL +11 TOTAL -10
AVERAGE 3.7 AVERAGE -3.33
TOTAL X AXIS SCORE 0.30

Figure 6.2. SPACE Matrix

38
DC is in Aggressive Posture indicating that the company can fully exploit available opportunities
and enhance its market share in the MSME industry. DC should exert more effort on the
Marketing campaign to increase its reach and innovate products to sustain competitive
advantage. The following should consider in pursuing Aggressive strategies.
 Market Penetration
 Market Development
 Product Development
 Diversification (Related or unrelated)

C. Boston Consulting Group (BCG) Matrix

Relative market share position (RMSP) is defined as the ratio of a division’s own market share
(or revenues) in a particular industry to the market share (or revenues) held by the largest rival
firm in that industry. Industry growth rate (IGR) in sales, measured in percentage terms that is.
The average annual increase in revenue for all the firms in an industry.
According to the Philippine Statistic Authority (PSA), the total market size of the food industry is
$10.6B, and the 2021 dollar value is approximately 52 pesos value.
 DC provided a total revenue of annual gross sales of PHP 2,739,779 for 2021. As such they
have a 0.005% market share in the Micro-Small-Medium-Enterprises in the whole
Philippines which is substantial since the business is under the specification of MSME.
 A 1.05% growth rate was established during that year.

Figure 6.3. BCG

39
DC is in a Question Mark Quadrant where in a market that is growing quickly but has a low
market share. As such the following strategies are recommended:

 Market Penetration
 Market Development
 Product Development

D. Internal-External Matrix

Internal Factor Evaluation DC Foods and Services

Weight Rating Weighted Score
Strengths
Safe dining experience 0.09 4 0.36
Aesthetic and spacious store design 0.13 4 0.52
Friendly and accommodating staff 0.07 3 0.21
Wide selection of affordable and high-
quality food and beverages 0.1 3 0.3
Relaxing and vibrant atmosphere 0.11 4 0.44
Online payment option 0.06 2 0.12

Weakness
Not easily accessible location 0.14 4 0.56
Limited budget for marketing 0.12 2 0.24
Inactivity in online platforms 0.04 3 0.12
Lack of distinctive and strong branding 0.08 3 0.24
Limited local distribution networks 0.06 2 0.12

1 3.23

40
 Figure 6.4. Internal-External Matrix

External Factor Evaluation DC Foods and Services

Weight Rating Weighted Score
Opportunities
Changes in lifestyles and market trends 0.13 4 0.52
Increased student population post-
pandemic (Face-to-Face) 0.11 4 0.44
Business Expansion 0.04 2 0.08
Food delivery applications 0.08 4 0.32
Ability to innovate products 0.06 3 0.18
Participating in the local food festival 0.05 2 0.1

Threats
Reliable methods of transportation 0.12 3 0.36
Inflation rate increased by 8% in
western Visayas 0.09 3 0.27
New variant of coronavirus spread 0.07 2 0.14
Newly open coffee shop business near
the main road 0.11 4 0.44
Unemployment rate increases to 4.7% 0.06 2 0.12
No recent construction of housing within
the village 0.08 1 0.08
1 3.05

Figure 6.5. Internal-External Matrix

External Factor Evaluation Total Weighted Score 3.05

41
 Internal Factor Evaluation Total Weighted Score 3.23

Figure 6.6. IFE Total Weighted Score Matrix

The IE Matrix of DC falls on Quadrant I and the following appropriate strategies are:
 Forward, Backward, and Horizontal Integration
 Product Development
 Market development
 Market Penetration
 Diversification (Related/Unrelated)

Grand Strategy Matrix

Grand Strategy Growth

DC has a 1.05% annual growth and has .005% Market share. Therefore, DC falls under

42
Quadrant II where it has rapid market growth and has weak competitive position. Hence,
the appropriate strategies illustrated in the chart.

43
 Figure 6.7. Grand Strategy MatriX

E. Summary of Strategies

Strategy SWOT SPACE BCG GRAND IE TOTAL

Forward Integration 1 1
Backward Integration 1 1
Horizontal Integration 1 1 2
Market Penetration 1 1 1 1 1 5
Market Development 1 1 1 1 1 5
Product Development 1 1 1 1 1 5
Related Diversification 1 1 2
Unrelated Diversification 1 1 2
Retrenchment
Divestiture 1 1
Liquidation 1 1

Figure 6.8. Summary of Strategies Tabulation

Conclusion

44
 The tally recommended strategies from various matrices indicate that intensive
strategies namely, Market Penetration, Market Development, and Product Development are
more appropriate for DC.
Without a doubt, the food service industry in the Philippines has been severely affected
by the changes brought about by the COVID-19 pandemic. Many establishments in the food
service industry offer more than food and beverages to their customers. Aesthetic Cafe, for
example, provides an ambiance that many people are simply not able to replicate in their
homes, and this is part of the experience that sets them apart from their competitors.
Through these recommended strategies, there are several factors that DC should
consider for their customer, some of these are the conscious eating by Filipinos including
Ilonggo. Customers transitioned to a healthy lifestyle and wanted a place that will help them
reclaim their energy. To make a way for easier accessibility that will help customers to
familiarize themselves going to the actual location. To provide privacy and space to customers
who wanted to chill after long-work hours and to continuously improve the quality of food and
services that can retain loyal customers and encourage them to promote the DC, through word-
of-mouth and social media to strengthen its branding.

F. Quantitative Strategic Planning Matrix (QSPM)

Daily advertising of DC Collaboration with

in social media Local Food Festival -
platform Iloilo Coffee Festival

Opportunities Weight AS TAS AS TAS

1. Changes in lifestyles and

0.13
market trends 4 0.52 3 0.39
2. Increased student
population post-pandemic 0.11
(Face-to-Face) 3 0.33 4 0.44

3. Business Expansion 0.04 2 0.08 1 0.04

4. Food delivery applications 0.08 3 0.24 2 0.16

5. Ability to innovate products 0.06 4 0.24 2 0.12

6. Participating in the local 0.05 3 0.15 4 0.2

45
food festival

Threats Weight AS TAS AS TAS

1. Reliable methods of
0.12
transportation 4 0.48 1 0.12
2. Inflation rate increased by
0.09
8% in western Visayas -------- --------
3. New variant of coronavirus
0.07
spread 3 0.21 2 0.14
4. Newly open coffee shop
0.11
business near the main road 4 0.44 2 0.22
5. Unemployment rate
0.06
increases to 4.7% -------- --------
6. No recent construction of
0.08
housing within the village -------- --------

TOTAL 1 2.69 1.83

Daily advertising of DC Collaboration with Local

in social media Food Festival - Iloilo
platform Coffee Festival

Strengths Weight AS TAS AS TAS

1. Safe dining experience 0.09 4 0.36 3 0.27

2. Aesthetic and spacious store
0.13
design 4 0.52 2 0.26
3. Friendly and
0.07
accommodating staff 4 0.28 3 0.21
4. Wide selection of affordable
and high-quality food and 0.1
beverages 3 0.3 4 0.4
5. Relaxing and vibrant
0.11
atmosphere 4 0.44 2 0.22

6. Online payment option 0.06 2 0.12 3 0.18

46
 Weaknesses Weight AS TAS AS TAS
1. Not easily accessible
0.14
location -------- --------
2. Limited budget for
0.12
marketing 4 0.48 3 0.36

3. Inactivity in online platforms 0.04 4 0.16 2 0.08

4. Lack of distinctive and
0.08
strong branding 4 0.32 2 0.16
5. Limited local distribution
0.06
networks -------- --------
TOTAL 1 2.98 2.14

Figure 6.9. Quantitative Strategic Planning Matrix

Daily advertising of DC in social media platform 5.67

Collaboration with Local Food Festival - Iloilo Coffee Festival 3.97

Through Quantitative Strategic Planning Matrix. The Sum Total Attractiveness Score (TAS) of
5.67 versus 3.27, the analysis indicates the business should do “Daily advertising of DC in social
media platforms”.
Doing daily advertising of DC on social media platforms such as; Facebook page,
Instagram, and Tiktok can help them lessen their cost through innovative advertising while
reaching the people inside and outside of Ana Ros Village through the promotion of business.
It also indicates that though DC might have an appealing atmosphere with quality food
and services but still lacks popularity in society the reason for them not being visited by the
customer and experiencing the slogan “YOUR PLACE, YOUR MOMENT”.

VII. Strategic Objectives and Recommended Strategies

A. Strategic Objectives

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To maintain the quality of service performance, DC must continuously advertise and brand
through social media platforms such as; Facebook or Meta and Instagram. Also, consider
creating another social media account in Tik Tok for the additional reach of customers in the
market.

a. Financial Objectives
DC aims to:

1. Increase the average annual revenue by 35%

2. Improve the digital presence and increase social media engagements by

50% in six months
3. Increase sales volume by 20% every quarter

4. Increase monthly the number of takeout orders and delivery services by 10%

5. Grow customer relationships and retention and induce higher average

spending by 30% by issuing o membership loyalty cards and other
incentives
b. Marketing Objectives

DC aims to:

1. Acquire 100 new online customers this financial year

2. Increase the average order value of online sales to ₱500 per customer

3. Increase customer lifetime value by offering customer loyalty incentives

4. Increase positive product reviews with at least 3 additional per month and maintain a
minimum of 4.5-star ratings

5. Grow social media presence by being active on all social media platforms created
(Instagram, Facebook) with at least 1 daily posting (post/story) in order to improve
awareness and demand for new products

6. Create a TikTok account to maximize brand engagement and awareness, and increase
online engagements on all social media platforms by 10% in the first two quarters.

B. Recommended Business Strategies

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The food culture of social media is defined as the taste that people develop through the years
(Foodtrotter.com) because this encourages users to post pictures and reviews about their
experiences in restaurants, giving businesses easy insights into their customer’s experience
(Nutritics.com). With the changing lifestyle of consumers amidst this pandemic, every business
should adjust its strategic and organizational approach to cope with the trends, needs and
wants of the customers.

The recommendation of business strategies was based to through market research or question
indicated in this paper’s methodology. Specifically seeks to answer:

a. What are the customer’s needs and wants in relation to their changing lifestyle
amidst the pandemic?

b. What are the strategies that DC should adopt and implement in order to cope with
the market trend, technological innovation and continuous development?

C. Results

Through data-gathering instruments, strategies were able to find out the answer to the
aforementioned question:

We found out that 94.10% of customers preferred to dine in, to enjoy the place, price, quality
of products and ambiance. These are the factors of the customers in order to be chosen as the
business preference. However, before that, they are not yet aware of what a business can offer
and they only see DC as a cafe, because of the logo misconception which is why they never
tried eating at DC.

Nowadays, 66.7% of respondents see DC as a hang-out spot and 33.3% said that DC is an
instragrammable place. Therefore, we can see that a quick getaway from the hustle and bustle
of city life is not considered because there is no continuous awareness given by the business to
its consumer. The reason for this is that the business is not very active in utilizing its resources
such as; social media platforms. According to the survey, 100% of respondents said they were
introduced to DC through social media. In this, we can see that aside from social media which
is a strong marketing tool to promote business and reach consumers, it is also important to be

49
consistent to be able to penetrate the market.

Although on the other hand, one weakness of DC is the familiarity with its location. Out of 31
respondents, 90.30% answered they are not familiar with the location because it is located on
the main road. In spite of that, due to changes in lifestyle most of the customers prefer to visit
the actual place because of its safety and aesthetic ambiance that gives them a satisfactory
experience on their hunger and cravings which also improves their mood when buying in DC.

Moreover, with innovation, continuous development and market trend DC should be active in
participating in trends and events such as; Mother's day, Father's day, Valentine's day,
Dinagyang, etc. By offering products that are delicious and meaningful, DC will consistently get
100% of the product and market interest in the business industry.

Lastly, DC should believe in the power of word-of-mouth as part of the marketing tool, having a
high percentage of recommendations is something DC can look forward to its status amidst
challenges.

The strategies sighted in the business are Market Penetration, Market Development and Product
Development. The recommendation for business strategies were mentioned:

a. Discounts & Loyalty Cards (Market Penetration)

Offering students discount and loyalty cards; as for the survey made in the study, most
of the people within the Anaros village are middle-class men. Therefore, they still feel the
inflation rates in our economy. Especially, if there is a scarcity of some ingredients in the
market since it also affects the pricing of the menu.

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According to the gathered data from the Philippine Income Class conducted by the Philippine
Institute of Development Studies (PIDS) the specification of Philippine income classes were
stated below:

The graph attached was included to reiterate the socio-economic status of village populations.

In relation to this, out of the 34 responses, 97.10% is having aged 18 to 24 and 88.20% of
them are full-time students. This means, that most of the customers in DC are students, 50%
of them are going to DC once a week and 34% are visiting the place 2 to 3 times a week. 97%
is a high percentage of a customer to willingly pay the price range of products ranging from 74
to 300. Through this data, providing students with discounts and loyalty cards would entice the
consumer to revisit the place again while having a consideration of not hurting their wallet.

b. Creating Tik Tok account (Market Penetration)

Furthermore, DC may consider creating a Tik Tok account to maximize brand engagement
and increase online engagement on all social media platforms by 10% in the first two quarters.
The management team should take the initiative in encouraging DC personnel/employees to ask
customers to like their social media page/s so the customers will be updated on the things that
they might like it. This will help the business to grow its digital presence while being active on
all social media platforms created, which will improve awareness and demand for new products.
Also maintaining the quality of food and beverage, customer service and ambiance should be

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implied. This will result in satisfying customer perspective that will be one of the factors in order
to get high positive feedback through personal or social media that will lead to customer loyalty
and retention.

c. DC to be eco-friendly (Market Penetration)

DC's food and beverages are guaranteed to be of high or excellent quality. These
products are freshly served through the artistic visual presentation using white dinnerware,
glass dish sets, and bamboo or rattan plates. However, they are packed through disposable
meal boxes and put inside a plastic bag when purchased online. These products would be
delivered by DC personally to people around the neighborhood and through third-party partners
for people within the city, including neighboring towns.
DC never failed to provide excellent customer service in terms of product support. But
having this competitive market today, where most of the customers are into delivery services
for their individual convenience, aside from the taste of food, the product’s first impression also
matters. That is why DC should consider using eco-friendly materials on their packaging
which will help them gather attention on social media platforms and in the market when
purchasing online.

d. Café Hopping (Market Penetration)

DC's one power product is coffee. Partnering with Iloilo Coffee Board (ICB) a non-
governmental organization (NGO) that initiated the very first “Iloilo Coffee Festival” last august
2022 aligning with the Iloilo City Charter Day Celebration has been spearheaded the by
Philippine Chamber of Commerce (PPCI). One of the Iloilo Coffee Board’s objectives is to
support and help introduce local cafes or coffee shops including DC to a wide audience, giving
opportunities to small businesses in Iloilo City.
Basically, the people who joined the event will be organized. They will be given an
itinerary to follow to avoid confusion and unorganized visitation. A group of people will need to
do a selfie when they come into the area as proof of visit. Aside from that, the personnel in
charge will be the guide to follow the instructions and facilitate the group. Through this, it will
give DC an opportunity to showcase its natural strength to the customer which is to let them
feel that this is their place and they should enjoy the moment in order to reclaim their life.

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 e. Business Expansion (Market Development)

Students were mainly the target market of DC. Therefore, DC should consider business
expansion near universities within Iloilo City. DC should need to properly position the business
in the market when considering business expansion. With the changing preference of
customer overtime, it is somehow effective to introduce DC’s dedication and commitment in
providing quality of food and beverage, customer service and ambiance in new geographical
market. In addition, to strengthen these values and qualities, DC should be relentlessly
committed in continuous menu expansion, constant development and staff training. Through
this, DC will be lead to the path of following its proposed vision with a strong support system of
its proposed mission.

f. Diversity through changing lifestyles (Product Development)

To maintain the competitive edge of the brand, DC has to differentiate itself from the rest of
the competition, and that is by introducing additional items to its menus, such as pastries and
baked goods. The best varieties of pastries to offer in DC include assorted croissants, specialty
pieces of bread, muffins, and pie slices. These pastries are the ideal options because they will
provide the cafe with diversity and help customers meet different dietary needs. Due to
customers changing lifestyles amidst the pandemic, there were also some recommendations
given by the customer during the convenience sampling that DC might consider. This is to
include vegan and vegetarian options such as vegan burgers, tofu, and other minimally
processed meat substitutes, veggie rolls, and Filipino meals but with a vegetable base instead.
DC can also offer dairy alternatives such as soymilk, coconut milk, and almond milk for its
beverages that utilize milk.

g. Seasonal Products (Product Development)

Based on the results of data gathered during convenience sampling, DC's customer buying
decision combines Variety-Seeking Buying Behavior and Dissonance-Reducing Buying Behavior.
Some customers, such as those who live in Ana Ros Village, may opt to purchase in DC due to
convenience–they purchase infrequently and without much research on the brand. On the other
hand, some customers would buy one time only for curiosity, considering that DC is only new to
the market. Being updated on market trends by offering seasonal promotions will help DC to

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increase its credibility and sales by being flexible with customers’ needs and wants. This is also
one way to promote DC’s brand and expand its reach in the market.

D. Recommended Organizational Strategies

The organizational recommendation strategies have been based on the aforementioned

changes in customers’ lifestyles under market penetration.

a. Rebranding

One of the main strengths of DC is its actual place which has an aesthetic ambiance that
is ideal for visual marketing, and “foodstagramming”. However, in order to feel this, a customer
must visit the actual place. DC is well-informed about its location when reaching customers
outside the village. But it is important to consider expanding its target market to increase its
sales and market share within the industry. Especially, since it belongs to a competitive market
where changes are fast approaching. That is why if the customers are having a hard time going
to the location, DC should touch their hearts through curiosity with a style.

Below are the proposed logo and packaging for DC’s rebranding as recommended
organizational strategies.

i. Proposed New Logo of DC

With its tagline, “Your Place, Your Moment,” DC identifies itself as a refreshing, elegant,
and Instagrammable cafe restaurant that offers well-presented and good-tasting food at a very
affordable price. Due to its location within a village, DC builds a reputation as the “good find” if
dining in an excellent cafe restaurant is a treasure hunting. The journey is a utopia of pretty
and tasty food delivered by the most accommodating and friendly people.
The logo of DC also gives misinterpretation to the customers towards the business, in
which elements and design don’t entice customers to have curiosity in style. It is also not

54
appealing to the eye to use disposable meal boxes and plastic bags with stickers attached to
them when purchased online. Moreover, since DC is partnered with food panda, maxis, and
other groups in social media such as; Padala rider, etc. DC can use this as an opportunity to
express its support and advocacy for the environment which also affects nation-building, as
stated in REPUBLIC ACT NO. 9512: AN ACT TO PROMOTE ENVIRONMENTAL AWARENESS
THROUGH ENVIRONMENTAL EDUCATION AND FOR OTHER PURPOSES.

In order for DC to be appealing, promote environmental awareness and provide

customers to have curiosity in style they should first change the current logo and packaging. DC
should switch to sustainable takeout packaging by using smaller boxes, bags, and containers to
be more eco-friendly with its product packaging for takeouts and online purchases. DC can use
recycled, edible, or even plantable containers for its food items and compostable and
biodegradable plastic alternatives for beverages. Automatically adding packets of condiments
for online orders is not recommended; asking the customers first whether they need such
spices and using them in bulk is more sustainable. It is also better for DC’s partner delivery
platforms to ask customers whether additional cutlery must be included so that excluding plastic
utensils for customers who are eating the products at home can be practiced.

ii. Current Logo of DC

55
 iii. Proposed New Logo

iv. Proposed New Logo with sample packaging

v. Proposed heading for company’s letter template

E. Financial Projections

a. DC Statement of Comprehensive Income 2021

56
DC Cafe’s 2021 Income Statement has annual gross sales of Php 2,739,779 and a net income of
1,450,311 which shows a profit margin ratio of approximately 53%.

Statement of Comprehensive Income

As of December 2021

Sales

Gross Sales 2,739,779

Cost of sales (880,368)
Gross Profit 1,859,411

Expenses
Wages expense 338,820

Marketing expenses 43,880

Utility and Bills 24,500

Other expenses 1,900

Total Expenses 409,100

Net Income 1,450,31

As a recommendation, In 2022, DC should reach a net income of Php 2,000,000 in order to

maximize its growth potential. To do so, they should aim for an annual gross sales increase of
35%, which will yield a gross profit by 2022 of Php 3,698,701. The profit margin ratio must at
least be at 55% in order to yield a net income will be Php 2,025,100 by 2022.

 Projected Income Statement

Statement of Comprehensive Income

(Quarterly)

For the years ended 2022 – 2024

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 2022 2023 2024

Sales

Gross Sales 3,698,701 5,154,800 7,216,720

Cost of sales (1,141,701) (1,715,760) (2,550,624)

Gross Profit 2,557,000 3,439,040 4,666,096

Expenses

Wages expense 400,000 420,000 450,000

Marketing 100,000 150,000 200,000
expenses

Utility and Bills 30,000 32,000 45,000

Other expenses 1,900 1,900 1,900

Total Expenses 531,900 603,900 696,900

Net Income 2,025,100 2,835,140 3,969,196

In order to build and hold a position in this very competitive industry, DC will need to
dedicate an annual increase of its previous marketing expenses which deem ineffective. The
budget will ensure that DC will continuously improve, evolve, and develop its current marketing
strategies to remain distinctive and relevant. We expect that wages will eventually increase over
the years due to economic changes. As DC’s operations are assumed to gradually scale up, their
bills and utilities are expected to rise as well in the following years.

VIII. Strategic Evaluation

Verify Social Media Posts. The brand must build credibility. Ensuring that all posts have

58
complete details, no typographical and grammatical errors, and other mistakes will encourage
customers to try out and purchase the products of DC.

Monitor Consumer Feedback. The cafe lacks measurement tools in knowing customer
feedback. DC can only determine its customers' satisfaction if they suggest the brand to a
friend and if they publish positive reviews on DC's Facebook page. As customer satisfaction is
one of DC’s top priorities, it is equally important to know what the customers have to say. By
keeping an eye on customer feedback, DC can serve its valued customers better. The company
will understand what its customers need and want, and it also gives them more room for
improvement and innovation.

Track Financial and Marketing Objectives. The objectives set by the company require
continuous monitoring. This will serve as a roadmap for DC to be on the right track. The actual
figures must be compared to the projected for the company to know which part needs
improvement or retention.

Proposed Logo and Packaging. DC should maintain close relations with the community
it belongs to, the image consumers project onto DC’s products and services may be influenced
by the community. This brand image of DC that the customers created with the influence of
others can affect their perception and opinions towards the café hence it is also one of the
psychological factors that might influence their purchase decision. Letting them feel purchasing
online or doing take-outs can also “FEED YOUR MOMENT”

Evaluating assumptions through determining Potential Market Growth

 Face-to-face classes will resume.
 The brand will gain increased recognition.
 The brand will expand in order to accommodate more customers.
 Employees will become more effective in their customer service interactions.
 There will be resellers for the brand.
 Due to the relaxation of safety protocols as the pandemic subsides, things will return to
normal, and an increase in the number of customers will be observed.

59
Overall Evaluation

The status of DC in the market was acceptable through the survey done to the
customers, interviews with the higher management level, and external and internal analysis.
It was concluded that customers were satisfied with what a business can offer. The
endorsed product development strategy will result in the achievement and competitive edge
of the brand, DC has to differentiate itself from the rest of the competition. Customers will
also appreciate the fact that there is this business next door that knows their needs. Which
will help DC to its vision of total customer satisfaction through dedication to quality food and
beverage, customer service and ambiance. In line, with mission DC can amplify the
customer buying decision through continuous menu expansion, development and staff
training.

On the other hand, the endorsement of the market development will result in expanding
market coverage. Business expansion is a stepping stone for DC, the challenges discussed
by the higher-level management of DC. It was determined that a huge factor that gives
them disadvantages is their location. Which has a significant relationship in having customer
loyalty not because of bad quality of food and services, bad customer service and bad
ambiance. But because of the location which is away in the main road. The strategy of
considering business expansion for DC will leave a benchmark for the customers that will
help DC to lead the market industry.

Finally, the endorsement of considering the proposal in market penetration will help the
business in retaining customers, producing loyal customers, increase customer scope of
reach through social media platforms, expose awareness, and nation-building. Through this,
the shared values such as; customer satisfaction, customer value, service excellence,
diversity and inclusion, accountability, and continuous improvement. Will be strengthened
and will give the light that DC wanted their customer to feel.

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IX. REFERENCES

BaLinkBayan. (2018). Iloilo City Hall eyes business one-stop-shop. Retrieved from
https://iloilocity.balinkbayan.gov.ph/2018/09/07/iloilo-city-hall-eyes-business- one-stop-
shop/
Chittithaworn, C., Islam, M. A., & Keawchana, T. (2011). Factors Affecting
Business Success of Small & Medium Enterprises (SMEs) in Thailand.
Creswell., J.W. (2012). Research Design: Qualitative, Quantitative, and Mixed
Methods Approaches. Thousand Oaks, California, SAGE Publications.
David., F.P. (2017). Understanding and Doing Research: A Handbook for beginners.

61
 Central Philippine University. Iloilo City.
David, F.R. (2017). Strategic Management: Concepts and Cases. 16th ed. Pearson
Education South Asia PTE. LTD
European Foundation for the Improvement of Living and Working Conditions
(2001). Employment relations in micro and small firms, Basque Institute of Research and
Studies, Loughlinstown, Ireland.
Inter-Agency Task Force (IATF, 2021). Omnibus Guidelines on the Implementation
of Community Quarantine in the Philippines. SEction 2(c) of E.O.
The Reportr Team. (2022). Guide: Alert level classifications May 16 to 31, 2022.
Retrieved May 30, 2022, from Reportr.world website: https://www.reportr.world/news/alert-
level-1-extended-in-metro-manila-until-may-31-a4671-20220515
UNDP (United Nations Development Programme) 2021. Human Development
Report 2021-22: Uncertain Times, Unsettled Lives: Shaping our Future in a Transforming
World. New York

A. Website References:

Nutritics.com-blog/7-reasons-why-social-media-is-important-for-your-food-business
Foodtrotter.com-food-cultures-what-is-food-culture
Dti.gov.com/faps/msme2021
sourceforge.net/software/product/Uniwell-POS/

X. Appendix

62
Name (Optional):

Age: __18 - 24
__25 - 34
__35 and above

Gender: __Male
__Female
__Others

Civil Status:__Single
__Married
__Separated
__Widowed
__Live in

Occupation: __Full time student

__Part Time Student
__Self-Employed
__Employed
__Unemployed

Monthly Family Income: __Less than PHP9520

__Between PHP 9520 to 19,040
__Between PHP 36,080 to PHP 66,640
__Between PHP 66,640 to PHP 114, 240
__Between PHP 114,240 to PHP 190,400
__At least PHP190,400

How do you often dine out each week?

__Once a week
__2 to 3 times a week
__4 to 6 times a week
__Everyday
__Never

How much are you willing to spend when eating/ordering out for a snack?
__PHP 74 and below
__PHP 75 to PHP 150

63
 __PHP 151 to PHP225
__PHP226 to PHP300
__PHP 301 to PHP375
__PHP 376 and above

What is the first thing that comes to your mind when you hear the word “cafe”?
__Coffee
__Snacks
__Relaxation
__Hang out
__Moments
__Instagrammable Place
__Beverage
__Meetings

What food do you usually eat in a cafe? (Check all that apply)
__Burger
__Fries
__Nachos
__Sandwich
__Pasta
__Chicken Wings
__Chicken Fingers
__Rice Meals
__Pastries
__Just Bread

What beverage do you usually drink in cafe? (Check all that Apply)
__Hot Coffee
__Iced Coffee
__Frappe
__Tea
__Milktea
__Lemonade
__Juice
__Fruit Shakes
__Bottled Water

When Purchasing a cafe which of the following do you prefer?

__Dine-in
__Take-out
__Delivered

What time of the day do you usually eat snacks

__8AM to 10Am
__10AM to 12PM
__12PM to 2PM
__2PM to 4PM

64
 __4PM to 6PM
__6PM to 8PM
__8PM and beyond

What Factors do you consider when choosing a cafe ? (Check all that apply)
__Place
__Price
__Quality of Products
__Variety of Products
__Recommendations
__Accessibility (Online and outline)
__Customer Service
__Ambience

Have you tried eating at DC: Your Place, Your Moment

__Yes
__No

What is the first thing that comes to your mind when you hear “DC: Your place, Your Moment”

What/Who introduced you to the brand?

__Social Media
__Family and Friends
__Promotional Aids
__Personal Discovery
__I'm not familiar with it

What products of DC have you tried?

How much do you usually spend for each purchase at DC?

__74 and below
__PHP 75 to PHP 150
__PHP 151 to PHP 225
__PHP 226 to PHP 300
__PHP 301 to PHP 375
__PHP 376 and above

What benefits do you receive as a customer when buying from DC?

__Satisfies hunger and cravings
__Reduces Stress
__Improve Mood

What factors do you consider when buying from DC( Check all that apply)

65
 __Income
__Place
__Quality of Products
__Family and friends or income
__Accessibility (online and Offline)
__Customer Service
__Ambience
__Personal Interest

Buying Situation

*Always *Often *Sometimes *Rarely *Never

 How often do you purchase from DC?

 You research about the goods and products offered by DC?
 You compare the goods and products offered by DC to other brands?
 How often do you change brands when buying a product?

Customer Satisfaction
*Very Satisfied *Satisfied *Neither satisfied nor dissatisfied *Dissatisfied *Very
Dissatisfied

 Prices of Products
 Quality of Products
 Customer Service
 Accessibility (online and offline)
 Variety of choices
 Ambience

What product do you like most about DC?

__Burger
__Fries
__Nachos
__Sandwich
__Pasta
__Chicken Wings
__Chicken Fingers
__Rice Meals

66
Market Research Results

67
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69
70
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October 29, 2022

MR. JOSEPH CANETE

Owner
DC Food Services
Block 23, Lot 8, Ana Ros Village
Mandurriao, Iloilo City 5000

Dear Mr. Canete,

Greetings of good health!

We are 2nd Year Master of Hospitality Management students of West Visayas State University.
Presently we are in the process of creating a “Strategic Plan” for our subject: MHM 506 (Strategic
Management in Hospitality and Tourism Business).

In this regard, we have chosen your business, DC: Your Place, Your Moment, to be our subject
matter. We are asking for your precious time and permission for us to conduct an interview
regarding your business performance and strategies.

We have chosen your business as the subject of our study because we wanted to know how a local
business like yours operates under the current business restrictions brought about by the pandemic.
As management majors, we want to help your business get back on track by coming up with a
strategic plan and strategies that can help improve your business performance.
Rest assured that all the data and information provided will be strictly used for academic purposes
and will not be shared with other interested parties without the expressed approval of the company.
The company will also be provided with a copy of the accomplished strategic plan once it is finished
as a reference for continuing to improve your business in future circumstances.

If you have any inquiries, you may contact me, Philip T. Mijares Jr., via mobile at 09517374900 or
via email at philip.mijaresjr@wvsu.edu.ph.
your positive response to this request will be a valuable contribution to the success of the study and
will highly be appreciated.

Sincerely,

Philip Mijares Jr.

Noted by: Conforme:

Cora Madalogdog-Samorin Ph.D Joseph Canete

Dean Owner
West Visayas State University DC Food Services

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74