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I.

SITUATIONAL ANALYSIS
A. SWOT/TOWS ANALYSIS
Strengths
Gardenia bread is a top-bread maker and a well-known brand in the bread industry. The company is
recognized as the most outstanding bread manufacturing in the product category by the consumer Urion
of the Philippines (CUP) held yearly during its Annual National Consumer Award (ANCA). Gardenia,
being a consumer-focused and branded food company, is singularly driven in delivering superior
consumer value through providing consumers with superior products. The Gardenia trademark means
value and is respected all over Asia.
Gardenia Philippines pioneers a unique distribution system, ensuring only fresh breads reach
consumers every day. Gardenia strictly follows its international policy of keeping only fresh stocks on
the store shelves.
The combination of superior product quality, advanced bread-making technology, and extensive system
of distribution reflects the consumer-oriented vision of Gardenia Philippines that brings consumers the
highest level of product satisfaction. Its better marketing skills and ability to make rapid expansion,
contribute a lot to Gardenias success which is evident with its continuous and rapid sales growth.
Weaknesses
Gardenia uses price skimming strategy which targets Class B and C with 15,000 and above income
which results to limited availability to lower-end market. Gardenia distributes only its products to
wholesalers/retailers but has no stand-alone stores to sell its own products. Gardenia also lacks online

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services for its customers convenience. In terms of profitability, Gardenia is doing well but not that
much because bread sector is not a highly profitable sector.
Opportunities
Gardenia is continuously expanding and striving to maximize the opportunities such as rapid market
growth, changing customer needs/preferences, economic boom/downturn, new technology, sales
decline for substitute products, and evolving business models in the industry to remain competitive and
meet the needs/preferences of its customers. New technology will help Gardenia produce more fresh
and high quality products to offer to its several customers. Different social media sites will also help
Gardenia reach and serve other customers easily and conveniently.
Threats
Economic boom/downturn, bargaining power of buyers/suppliers, changing customer needs/tastes, new
technology, increase in government regulation, and introduction of new substitute products are some of
the threats that might affect the market demand and sales of Gardenia if not monitored and controlled
properly. Affordability among Filipino customers is also one of the threats faced by Gardenia because
they cannot price its products in the Philippines as they should be. Different economic issues and
government malpractices could affect Gardenias operations and strategies and could make the business
uncompetitive. Even a small change can affect the position of the brand.

TOWS ANALYSIS

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External Opportunities
(O)
1. Rapid market growth
2. Changing customer
needs/tastes
3. Economic
boom/downturn
4. New technology
5. Sales decline for
substitute products
6. Evolving business
models in the industry

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1.
2.
3.
4.
5.
6.

External Threats
(T)
Economic
boom/downturn
Bargaining power of
buyers/suppliers
Changing customer
needs/tastes
New technology
Increasing government
regulation
Introduction of new
substitute products

Internal Strengths
(S)
1. Well-known brand
image
2. Superior quality
products
3. Better marketing skills
4. Growing product line
5. Wide coverage and
distribution
6. Ability to make rapid
expansion
7. Supply power

Internal Weaknesses
(W)
1. Limited
availability/penetration
to lower-end market
2. No stand-alone stores
3. Online services

SO
Strengthen brand
image through better
marketing skills and
promotional tools
Maximize the use of
technology for better
performance towards
producing quality and
health conscious
products to retain loyal
customers and gain
potential customers
Continue developing
advertisements and
other marketing
programs/activities to
promote new products
and attract target
market
Enhance product line
to increase market
share

WO
Look for suppliers
offering cheaper yet
quality raw material to
produce affordable
products that will cater
the lower-end market
Adopt new technology
to provide online
services and create
online promotions that
will strengthen its
brand image and gain
potential market
Expand business by
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ST
Continue producing
innovative, distinctive,
and high quality
products to retain loyal
customers and gain
new potential
customers
Develop marketing
skills and promotional
tools to attract new
customers and increase
sales
Empower brand name
through advertisements
in making quality and
health conscious
products to overcome
threats
Adapt to policy,
technological and
other changes to
continue providing
quality
products/services
WT
Innovate products to
overcome threat of
customer changing
needs/tastes and other
threats
Produce affordable yet
quality products that
will cater the lowerend market
Establish stand-alone
stores to expand
business and offer
more products to
increase market share

building stand-alone
stores to offer new
products and other
services to cater more
customers

and attract more


customers/investors
Maximize the use of
websites and social
media sites to promote
products and create
buzz online
Provide online services
for convenience and
easy access to products
and product info.

B. PEST ANALYSIS
Political/Legal Factors
Government rules and regulations affect Gardenias operation because of it has to cope with the
changes imposed by the Government. These rules will help Gardenia improve its business operation
but also it could have negative impact on it since the government has control over the products and its
price. Gardenia is expected to comply with the requirements ordered by the government.
Taxation policy affects the production costs of Gardenia. The price of Gardenia breads depends on the
price of its raw materials and higher taxes on these raw materials indicates an increase in price in
production costs of Gardenia which is also an indication of an increase in the price of Gardenia
products.
Economic Factors
Key economic indicators include interest rates, gross domestic, retail price index, unemployment rates
and exchange rates. Philippines provide a growing market for premium food product. Economy growth,
and especially employment in services sector jobs, is driving demand for more convenient and prepared
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foods. Gardenia believes that the Gardenias success is brought regarding by the dedication and
commitment of each member of the Gardenia family. These dedications are leading Gardenia to be the
no1 in bread industry. During global economic crisis, the industry had a flat growth but Gardenia
continue to grow by two to four percent. Gardenia should continue encouraging and providing more
opportunities for employment while making Gardenia bread more widely available conveniently to
customer.
Due to changes in economic factors such as increase in interest rates could affect demand of customer
for Gardenia products and this could be an opportunity for the substitute products which might have
negative impact on Gardenias operation and profit.
Socio-Cultural Factors
Rapid growth of population in the Philippines is an indication of growth of potential customers of
Gardenia which could increase the demand for its products.
Socio-cultural forces will affect the values, beliefs, and lifestyles of a society. Over the past few years,
rising levels of obesity, heart disease, and diabetes in the Philippines have rapidly increased consumer
interest in healthy and nutritionally food and government interest in promoting healthier eating and
lifestyles. Breakfast is important for people for having healthier. According to the Philippine
Association of Flour Millers Inc. (PAMFIL) said that 85 percent of Filipinos prefer to eat bread instead
of rice for their breakfast. Consumers are willing to pay anything that will make healthy and fit.
Technological Factors
Developments in technology lead to new products and services and improve how they are produced
and delivered to the end user. As the top-bread maker and leader of bread manufacturing industry,
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Gardenia using state-of-the-art-bread manufacturing plant is capable making 6000 loaves of bread per
hour or nearly 150000 loaves per day. It is the equipment whereby almost untouched by human hands.
Therefore, it ensures providing safe and best quality of bread product. New baking tools and
equipments will help enhance/speed up Gardenias production.
The development of internet is an opportunity for Gardenia to promote its products online and enhance
its brand image. Gardenia could enhance its website and maximize the use of social media to offer
online services and reach new potential market. This will help Gardenia increase its market share and
influence customer purchasing decisions.
C. INDUSTRY ANALYSIS
Threat of New Entrants (Medium Pressure)
In these high competitive industry, there are a lot possibility that new competitor enter to the industry.
Indirectly, new entrants to industry will lead threat that might decreasing level of customer loyalty and
will be highly competition in between. Capital requirement for investment in bread industry in
purchasing those raw material and machinery before the entrant could begin selling the product. In
additional, certain market share need to be capture for the new entrant before it could reap the
necessary economies of scales to allow it with rival firm.
Gardenia produces affordable products and enjoys the economies of scales to compete effectively.
Gardenias enjoy fairly high product differentiation whereby retailers prefer of brand recognition and
customer loyalty. Therefore, it results harder for new entrants to enter the market.
Bargaining Power of Buyers (Low Pressure)

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Individual customer does not influence much to bakery industry. Gardenia main buyers are like
hypermarket and retailers which pay lots for every year. Therefore, bargaining power is low due to a
lots distributor getting resources (bread product) from Gardenia and selling it to end-user. The product
for Gardenia is differentiated base on the quality.
Buyers are not easy to always find alternative suppliers. In relation to buyer power in Gardenia industry
seeks to enhance customer loyalty in focusing existing relationships and trying maintaining in longterm relationships with buyers.
Bargaining Power of Suppliers (Medium to High Pressure)
Suppliers of Gardenia have a great bargaining power especially for those monopoly products. For
example, flour is the main raw material in producing bread. There are few substitutes to their product.

Threat of Substitute Products (High Pressure)


The threat of substitute for Gardenia product is high within the industry. Consumer is looking for bread
with attracting topping and decoration. For example, those bakery shop usually providing filling bread
and attractiveness bread which meet the expectation of customer. Other industry such as fast food also
providing breakfast value which meal serve with bread. It becomes a threat to Gardenia.
Current Category Rivalry (Medium to High Pressure)
Gardenias operates in a highly competitive industry. Some of the competitor are by low priced
confectionery producers which are small family-run businesses whereby producing bread that are sold
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in the neighborhood which called small-scale production for the local market. On the other hand, a few
large competitors such as Golden Donuts, Inc or Red Ribbon Bake Shop, Inc also produce affordable
products.
Baking of bread, cakes, pastries, pie and similar perishable bakery products
D. MARKET ANALYSIS
a. Market Size
Philippines market in Baked Goods industry is growing fast by this time. Filipino market who
consumes baked goods products such as pastry, cakes, breads and cereals. Market of Baked goods
industry reached 48% share of total sales as of 2013 and expected to reach higher on 2015. There is a
big part of new potential market that is health conscious and can account a lot of share in the sales of
the baked goods since the trend in the industry is healthier products to come out.

b. Market Growth Rate


In 2013, Philippines strong performance in economy helped the Baked Goods industry to work
well. Due to fact that Filipinos are starting to consume breads, pastries and cakes more frequently. The
market for the baked goods and cereals industry in Philippines increased at aggregate annual growth of
3.4 %.
Baked goods industry is dominated by small bakeries which bake and sell their products on-site. In
2013, it is expected that unpackaged/artisanal offerings will account for a 48% share of total sales in
baked goods. Amongst packaged/industrial players, Gardenia Philippines is expected to see the biggest
revenue contribution. The company share is expected to reach 11% in 2013. Gardenia Philippines
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banks on its reputation as a manufacturer of freshly baked bread which is delivered to retailers daily. In
recent years the company expanded its product line to include pastries, high fiber bread and healthier
alternatives.
c. Market Profitability
Buyer Power - This has a lot of effect on the profitability of Gardenia since they have loyal
buyers and alliances that make their profit higher.
Supplier power Supply for the products are bound to be attainable since it is available
nationwide and they have extensive mass distribution of the products.
Barriers to entry - The profitability in this force can affect the market and its industry since
switching costs in the market are likely to happen in Philippines economy.
Threat of substitute products Implications in this force is low because of the fact that Gardenia
has strong brand image and large amount of market. They can still get higher market profitability.
Rivalry among firms in the industry Rivalry can affect the profitability of the company but
since Gardenia top the market share for the past few years, their profitability in this force are much
unlikely to step down.
d. Industry Cost Structure
Firm Infrastructure: Market strategy, market policy, organizational structure, company culture
Human resource management: staffs training and development, market research, hiring,
compensation
Technology Department: transaction processing system, production unit database, sales
Procurement: purchasing raw materials, supplies, equipment
e. Distribution channels
Gardenia Philippines pioneered a unique distribution system, ensuring that only fresh breads
will reach consumers every day. It strictly follows its international policy of keeping only fresh stocks
on the store shelves. Delivery vans leave the production plant as early as 4 oclock in the morning to
distribute the products in specific locations nationwide as soon as it is produce from the factory.
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Gardenia Philippines always replace unsold breads with their freshly baked premium quality breads
and other products.
Gardenia conducts extensive mass distribution of their product through Retail Stores,
Supermarkets, direct selling and grocery stores. Sponsorship in events helps the company to distribute
and promote their product by this new channel. Products of Gardenia are mostly available nationwide,
because of its availability in the channel power.
f. Market Trends
Product Quality - The preference for high-quality product of Market is increasing in light of the fact
that they appreciate the qualitative differences.
Health Consciousness People nowadays want to live in healthy way, seems everyone is getting fit and
healthy, these are potential market and they are growing.
Appearance Market who consumes bread and wheat products are tend to look for more appealing
products than the usual.
Selection - People are demanding a larger variety of breads. They dont look for common breads,
pastry, cakes nowadays.
g. Key Success Factors
Gardenia provides premium quality products that give satisfaction to their customers. Since Gardenia
Bakeries established their brand image through the years it is one of the key success factors that they
have.

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Technologies nowadays, tapped industries along the lines of computer, phone and other gadgets, having
advance bread-making technology of Gardenia, it made as their edge to the other competitors.
Gardenia has extensive system of distribution to the country, they have pedicarts, pushcarts and now
they are available to supermarkets, sari-sari store and every so often they are also conducting school to
school programs that help them to be efficient to the consumers.
Gardenia being an established company their key success factor would be the strong financial position
in the industry that makes them more in demand.
E. CUSTOMER ANALYSIS
The Gardenia Bakeries Philippines Inc. exists to satisfy the consumers needs. They are able to
provide breads for many different target markets including, people of all ages, sexes, races, etc.
Gardenia products are able to sell to a diverse worldwide population.
MARKET SEGMENTATION
Gardenia is certainly for everybody-whether you are a student, working professional, young, young-atheart, dieters, nutrition-seeking families, health conscious and On-The-Go.
DEMOGRAPHIC SEGMENTATION

Social Class

Gardenia products are purchased by all the different classes, but mainly by the

middle and upper class citizens.


Freshly baked products at a reasonable and justifiable price is what Gardenia strives to provide for their
customers. A comfortable and convenient atmosphere provides a place where the customer can free
themselves from buying the products.
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Gardenia have supply the bread to all the convenience shop, hospital, school, supermarket, provision
store and hypermarket. Due to the increase in demand of bread, Gardenia has to start to increase the
supply of bread to the market.
Gardenia focused on meeting the expectations of its target consumers. These are:
First, freshness. Everyone likes to eat bread thats just come out of the oven. Gardenia responded to
this need with the G-lock as assurance for freshness. The g-lock is a small but durable resalable clip
used to seal in the breads freshness. There is seven G-lock colors assigned for the seven days of the
week, making it easier in pulling out unsold breads every day of delivery, and to make sure that only
newly baked breads are displayed on store shelves. Gardenias unique G-lock system keeps consumers
informed of the date the bread is baked for, the suggested retail price, the production line the bread was
produced, and batch number.
Second is taste. The local term for loaf bread is tasty. In the case of Gardenia, to differentiate the
promise of taste, it claimed masarap kahit walang palaman. Gardenia uses only the finest ingredients
from all over the world.
Next is aroma. Filipinos believe that food must smell good to taste good. Inaamoy muna bago
kinakagat. The natural freshness and enticing smell of Gardenia breads stand out among other brands.
Fourth is softness. They also prefer soft breads, because for them, softness means freshness. For them,
the bread is old if it is not soft. It is a common observation that when buyers approach the bread
shelves, they pinch and squeeze the bread. And did you ever notice that Gardenia loaf slices can be
rolled without breaking? Try this out!

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Nutritive Value. And of course, eatings purpose is primarily for nourishment and nutrition. The
nutrients most of us need are Vitamin A, Iodine, and Folate. Gardenia breads are fortified with essential
vitamins and minerals that make it really nutritious.

MARKET NEEDS
Gardenia Bakeries Philippines Inc. offers the following benefits to its customers Nutrition,
Accessibility, Convenience, Customer Service, Atmosphere and Selection
MARKET TRENDS
Every consumer has different needs and wants, so Gardenia supplies many variety of bread in order to
meet the demand of the consumer in order to satisfy them. Demand is a principle that the consumer
willing to pay for the price and also desire to buy the goods and services.
Consumers are very delicate when it comes to the food purchasing. Especially in the Philippines, they
want their breads to be fresh in the oven. Knowing this, Gardenia Bakeries Philippines Inc. thought of
how to ensure their market in the country whenever purchasing their product.
SURVEY RESULTS:
Table 1. Demographic profile of the respondents according to their age:
AGE

FREQUENCY

PERCENT

12-20
20-30
30-40
40-50
50 and up

15
10
0
6
0

48%
32%
0%
19%
0%

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TOTAL

31

100%

Table 1 (See Appendix for chart presentation)


The researchers conclude that most of the respondents are students and belongs to Gen Y.
Table 2. Demographic profile of the respondents according to their location:
AGE

FREQUENCY

PERCENT

Laguna
Imus
Las Pias
Cavite
Muntinlupa
Silang
Dasmarias
Bacoor
Makati
Manila
TOTAL

1
6
7
2
1
1
3
4
1
1
27

.04%
22%
26%
.07%
.04%
.04%
11%
15%
.04%
.04%
100%

Table 2 (See Appendix for chart presentation)


The researchers conclude that most of the respondents are from Las Pias City.
Table 3. Do you eat bread?
AGE

FREQUENCY

PERCENT

Yes
No
TOTAL

31
0
31

100%
0%
100%

Table 3 (See Appendix for chart presentation)


The researchers conclude that all of the respondents eat bread.
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Table 4. If you dont eat bread, do you buy bread for your family?
AGE

FREQUENCY

PERCENT

Yes
No
TOTAL

23
8
31

100%
0%
100%

Table 4 (See Appendix for chart presentation)


The researchers conclude that most of the respondents buy bread for their family.
Table 5. How often do you eat bread?
AGE

FREQUENCY

PERCENT

Once a day
Twice a day
Once a week
Others (every other day,

15
4
9
3

48%
13%
29%
10%

31

100%

most of the times in a


week
pag may tinapay lang or
trip mag burger
TOTAL

Table 4 (See Appendix for chart presentation)


The researchers conclude that most of the respondents consume bread once a day.
Table 6. Which meal of the day do you consume bread?
AGE

FREQUENCY
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PERCENT

Breakfast
Lunch
Snacks
Dinner
Others (every other day,

26
0
23
4
0

49%
0%
43%
%
0%

53

100%

most of the times in a


week
pag may tinapay lang or
trip mag burger
TOTAL

Table 5 (See Appendix for chart presentation)


The researchers conclude that most of the respondents consume bread during Breakfast.
Table 7. Have you tried Gardenia before?
AGE

FREQUENCY

PERCENT

Yes
No
TOTAL

31
0
31

100%
0%
100%

Table 7 (See Appendix for chart presentation)


The researchers conclude that most of the respondents prefer Gardenia bread.
Table 8. Where do you usually buy bread from?
AGE

FREQUENCY

PERCENT

Supermarket
Sari-Sari Store

28
3

84%
10%

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Convenience Store
Bakeries
Drug Stores
Others
TOTAL

4
7
1
1
31

13%
23%
3%
3%
100%

Table 8 (See Appendix for chart presentation)


The researchers conclude that most of the respondents buy breads Supermarket.
Table 9. Why do you choose bread from there?
AGE

FREQUENCY

PERCENT

Quality Services
Convenience Locations
Publicity of the Store
Membership Rebates
Others
TOTAL

18
19
2
1
1
41

58%
61%
6%
3%
3%
100%

Table 9 (See Appendix for chart presentation)


The researchers conclude that most of the respondents buy breads Supermarket because of
Convenience and Quality Service.
Table 10. What are the criteria(s) you look for when choosing the brand of bread to eat?
AGE

FREQUENCY

PERCENT

Softness
Freshness
Availability
Nutrition
Price

21
28
8
14
14

68%
90%
26%
45%
45%

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Packaging
Flavors
Others
TOTAL

9
8
0
41

29%
26%
0%
100%

Table 10 (See Appendix for chart presentation)


The researchers conclude that the top 3 qualities that consumers consider in choosing bread to
eat are softness, freshness and nutrition and price.
Table 11. Which new forms of packaging would you prefer?
AGE

FREQUENCY

PERCENT

Box-form (Travel-pack,
Picnic-pack, etc)
Ziplock
Mini Size Sandwich
I dont want to change the

16%

16
2
11

52%
6%
35%

packaging
Others
TOTAL

0
41

0%
100%

Table 11 (See Appendix for chart presentation)


The researchers conclude that most of the respondents prefer Zip Lock as the new packaging for
Gardenia Breads.
Table 12. Which type did you try before?
AGE

FREQUENCY

PERCENT

White Bread (Classic


White Bread Regular and

27

87%

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Thick Slice, Health Bread


(High Fiber Whole Wheat
Bread, High Fiber Wheat
Raisin Loaf and Slim n Fit
Wheaten Bread), Snack
Items (Twiggies Yellow
Cake, Cream Roll, Fun
Bun, Muffin)
Health Bread (High Fiber
Whole Wheat Bread, High
Fiber Wheat Raisin Loaf
and Slim n Fit Wheaten
Bread)
Pandesal and Buns
(Premium Pandesal, Softdelight pandesal, Whole
wheat pandesal, Hotdog
Bun, Hamburger Bun)
Snack Items (Twiggies
Yellow Cake, Cream Roll,
Fun Bun, Muffin)
Crunchy-licious Toasts
(Butter Toast, Garlic
Toast, Cinnamon Toast)
Others
TOTAL

18

58%

14

45%

13

42%

11

35%

0
83

0%
100%

Table 12 (See Appendix for chart presentation)


The researchers conclude that most of the respondents prefer have tried White Bread (Classic
White Bread Regular and Thick Slice, Health Bread (High Fiber Whole Wheat Bread, High Fiber
Wheat Raisin Loaf and Slim n Fit Wheaten Bread), Snack Items (Twiggies Yellow Cake, Cream Roll,
Fun Bun, Muffin) products of Gardenia Breads.

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Table 13. If Gardenia Bakeries would add products on their product line, what products you think
would be appealing to the consumers?
AGE

FREQUENCY

PERCENT

Gardenia Spreads
Gardenia Jam and
Marmalade
Gardenia Cream Filled
Biscuits
Gardenia Mamon and
Ensaymada
Gardenia Filipino Biscuit
Gardenia-To-Go (Ready
to eat sandwich)
Gardenia Hot Drinks
Others
TOTAL

12
7

39%
23%

13%

19

61%

5
9

16%
29%

4
0
60

13%
0%
100%

Table 13 (See Appendix for chart presentation)


The researchers conclude that most of the respondents prefer Gardenia Mamon and
Ensaymada to be part of the new products for Gardenia Breads.
Table 14. If Gardenia Bakeries would launch the "Gardenia Spreads", what flavors would you consider
buying?
AGE

FREQUENCY

PERCENT

Tuna Spread
Choco Spread
Chicken Spread
Ham Spread
Peanut Butter Spread
Others
TOTAL

15
14
12
6
12
2
61

48%
45%
39%
19%
39%
6%
100%

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Table 14 (See Appendix for chart presentation)


The researchers conclude that most of the respondents prefer Tuna flavoured spread.
Table 15. If Gardenia Bakeries would launch the "Gardenia Jams and Marmalade", what flavors would
you consider buying?
AGE

FREQUENCY

PERCENT

Mango
Strawberry
Orange
Pineapple
Coconut
Blueberry
Others
TOTAL

11
17
1
5
6
12
1
61

35%
55%
3%
16%
19%
39%
3%
100%

Table 15 (See Appendix for chart presentation)


The researchers conclude that most of the respondents prefer Strawberry flavoured Jam and
Marmalade.
Table 16. If Gardenia Bakeries would launch the "Gardenia-to-go" (Ready to eat sandwiches), what
flavors would you consider buying?
AGE

FREQUENCY

PERCENT

Ham and Cheese


Sandwich
Chicken Sandwich
Bacon and Egg Sandwich
TLC Sandwich

19

61%

13
18
13

42%
58%
42%

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Tuna
Others
TOTAL

13
0
76

42%
0%
100%

Table 16 (See Appendix for chart presentation)


The researchers conclude that most of the respondents prefer Ham and Cheese flavoured
Sandwich.
Table 17. Overall, are you satisfied from the products of Gardenia Bakeries?
AGE

FREQUENCY

PERCENT

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
TOTAL

16
13
2
0
0
76

52%
42%
6%
0%
0%
100%

Table 16 (See Appendix for chart presentation)


The researchers conclude that most of the respondents prefer Ham and Cheese flavoured
Sandwich.
Table 17. Monthly Income
AGE

FREQUENCY

PERCENT

below P 5,000
P 5001 - P 15,000
P 15, 001- P 25,000
P 25,001- P 35,000
P 35, 001- P 50, 000
P 50, 001- P 100, 000

15
5
5
5
1
1

48%
16%
16%
3%
10%
3%

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P 100, 000 and up


TOTAL

1
33

3%
100%

Table 17 (See Appendix for chart presentation)


The researchers conclude that most of the respondents prefer Ham and Cheese flavoured
Sandwich.
E. COMPETITOR ANALYSIS
a. Competitor Profile
COMPANY

MISTER
PULLMAN

COMPANY PROFILE

MISSION AND VISION

Established in 1985, Mister Pullman began as a


provider of fresh, high-quality bakery products
at affordable prices in the Metro Manila area.
With initial manufacturing facilities and a small
work force, it expanded its business through the
installation of state-of-the-art machinery and
systems from the best bakery equipment
suppliers from Japan, North America, China,
and Taiwan making its plant a technology-driven
production site aimed at leading continuous
improvement. Consequently, it continues to
satisfy customer needs by providing quality
goods and excellent service.

Information Not Available

Today, Mister Pullman has become one of the


leading brands of bread and pastries in the
country and is now available in thousands of
supermarkets and bakeries. Its daily production
has exceeded 10 tons of flour. Mister Pullman
offers a wide range of superior bakery products
including its classic white bread, customer-loved
mongo bread, butter loaf, cheese bread, and
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tasty pastries like mammon, ensaymada, cup


cake, brownies, hopia, and many more. Mister
Pullman breads are known for their good taste,
freshness, softness, oven-baked aroma and
reasonable prices. Many of its products are
cholesterol free and bromate free, have zero
transfat, and are vitamin fortified, which are a
good part of a healthy diet. Its product slogan
"Cant forget the great taste" best describes the
product benefits. As a result of the greatness of
its products, the company has won the National
Shoppers Choice Award and the Philippine
Marketing Excellence Award for three
consecutive years.

MARBY
FOOD
VENTURES

Established 1976, Marby Food Ventures, a


Filipino owned company and among the
pioneers of the trade, carries various baked
products viewed as the benchmark of quality by
the bakery industry. Since its inception in the
70's, Marby's bakery products have been a
household name, providing each family with
bread and pastries that are highly affordable and
available. Its increasing demand prompted the
company to make the product accessible to its
market through widespread distribution and
unique selling techniques.
At a time when breads were sold in the bakery
and sari-sari stores (Filipino small scale
convenience stores) along residential areas,
Marby proprietors decided to come up with a
modern and more flexible marketing strategydelivery service. Long before this innovative
system became popular, Marby started its own
delivery scheme that reached consumers
regardless of proximity. With its effective
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25

From the company's


conception, Marby Food
Ventures has embarked on a
mission of providing
unparalleled service. With its
slogan "Quality Baking
Traditions", motivated by its
quest for excellence, Marby has
pledged to carry on its tradition
of ensuring utmost satisfaction
through continuous guiding
principles of improvement and
dynamism to build trust and
confidence with its valuable
clientele.
As the 3rd millennium goes
full swing, Marby Food
Ventures envisions to be the
largest manufacturer and
distributor of high quality
baked products, as well as

distribution system, Marby was catapulted to


being one of the industry's leading
manufacturers and distributors in the market.
And in no time, Marby became a household
name. From a small proprietorship, it has grown
into one of the leading bread manufacturing
companies in the Philippines.To ensure its
customers of continuous product innovations,
Marby has been in partnership with several
market research firms to recognize the behaviors
of consumers and today's trends.

providing a vast range of food


products for the retail market.
Its high rate of production will
be backed by sophisticated,
high-technology bakery
machines, skilled manpower,
an efficient distribution system,
and facilities which will ensure
the quickest and easiest access
to even the most remote region
of the country and the rest of
the global market.

Today and for many years, Marby holds the over


all market leadership in baked product
manufacturing and distribution serving more
than 2000 outlets in GMA and Luzon.
Consequently, by virtue of its daily output,
Marby is considered as one of the major
consumers of bakery ingredients. Its overall
production comes from a massive manufacturing
plant in Bulacan, operating 24 hours daily to
produce over a hundred varieties of bread,
pastries and biscuits that Marby is currently
known for.

Galactica Food Corporation has been in the


GALACTICA bakery business for 34 years now. Since its
FOOD
establishment in 1979, the owner Mr. Lam A.
CORP. (PAN- Santos has set a goal of serving the Filipino
A-CUP)
people with baked goods that are reasonably
proced but exceptionally high in quality and in
taste.
Though Mr. Lam is a Half Filipino and Half
Chinese in Blood, he being born here in the
Philippines, already gave him the edge on what
the Filipino Taste buds would prefer in terms of
baked goods.
Pan A Cup, our brand name was first known for
the primary product the Pullman bread. The
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26

This Filipino owned


corporation hopes to maintain
the high quality and goodness
of its low-processed baked
products that its loyal
customers have enjoyed.
Through the years, Pan-A-Cup
bakeshop firmly believes its
customers deserve only the best
and we will continue to exist
under the principle of pur logo
Basta Pan-A-Cup masarap.

bread has a very distinct taste, which to our


opinion still compares to none in the market. We
boast not only of quality and taste of our bread
line selection, but now we have over 30 varieties
of pastry goods selling in the market. For more
than two and a half decades now, pan-a-cup
have been doing business with top supermarkets
in the metropolis area and now even with chains
of convenience store in Metro Manila and
surrounding provinces.

B. Competing Product Features


COMPANY

MISTER
PULLMAN

MARBY FOOD
VENTURES

GALACTICA
FOOD CORP.
(PAN-A-CUP)

PRODUCT FEATURES
good taste
freshness
softness
oven-baked aroma and
reasonable prices
Superior quality products
Innovative
Good taste
Wide range of variety

Distinct taste
Wide range of variety
Good quality
Low processed baked products

C. Target Market Selection

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27

Mister Pullman- Mister Pullman aims to target bread lovers with its product offerings. It caters

to target moms and young adults and students who are looking for easy to go snacks.
Marby Food Ventures- With its variety of flavors and products, Marby aims to target family,
moms, also students and young professional to be their preferred snack. They also target those
who are looking for healthy breads and products.

Galactica Food Corp. (Pan-A-Cup)- Pan-A-Cup with its innovative and healthy product line
aims to target young professionals and students who are looking for snack alternatives which is
healthy and affordable.

D. Positioning Strategy
COMPANY

TAGLINE

POSITIONING STRATEGY

MISTER PULLMAN

"Cant forget the great taste"

Mister Pullman positions itself to


be the bread that you will never
forget, the bread that you can
always remember because of its
good taste, freshness, softness
and oven-baked aroma.

MARBY FOOD VENTURES

"Quality Baking Traditions"

Marby Food Ventures positions


itself to be the superior quality of
bread in terms of baking process.
They want to be remembered as
the company that is known for
quality baking.

PAN-A-CUP

Basta Pan-A-Cup masarap

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28

Pan-A-Cup positions itself to be


the bread that has distinct taste
and the bread that customers will
immediately consider because of
its deliciousness.

E. Marketing Mix Strategies

COMPANY

PRODUCT

PLACE

PRICE

PROMOTION

MISTER

Wide range of

Availability in

Reasonable price

Use of website

PULLMAN

variety products

leading

Use of Facebook

supermarkets and

fan page

grocery stores.

MARBY

Wide range of

Availability in

variety products

leading

FOOD
VENTURES

Affordable price

Use of website

Affordable price

Use of website

supermarkets,
Produces healthy

grocery stores,

Products

convenience
stores and drug
stores.

PAN- A-

Wide range of

Availability in

CUP

variety products

leading
supermarkets and

Produces healthy

grocery stores.

Products

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29

Differential Advantage Analysis


WEIGHT GARDENIA

Key

SCORE MARBY SCORE PAN-

SCORE Mister

SCORE

A-

Pullma
n
0.6

0.6

2.8

2.8

.10

.70

0.5

CUP
6

.40

3.6

2.8

Industry
Success
Factors
Extensive
distributio
n

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30

Customer

.20

1.6

1.2

1.4

1.4

.10

.70

0.6

0.6

0.6

.20

1.8

1.6

1.6

1.4

focus
Economies
of scale
Product
Innovation
TOTAL

1.0

8.4

6.7

Market Target (s) Description


Primary Market
The primary target market of Gardenia Bakeries is Generation X from ages 33-53 years old and
Generation Y from ages 25-32 years old of Class B and C with 15,000 and above income, mostly
mothers who are regular or occasional users of bread and who highly value the freshness, taste, and
nutritional content of the product. They are devoted to their family so they value work-life balance.
They easily adapt to change and practice healthy lifestyle.
Secondary Market
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31

6.8

The secondary target market of Gardenia Bakeries is composed of the children, students, and young
professionals. They are the ones who have great influence on the primary markets buying decisions.
The children ages 4-11 years old who are exposed in various have significant influence over family
purchases. Students who look and spend for quality, convenient, and ready to eat products is also part
of Gardenias secondary market since Gardenia breads were made available in several school canteens.
Young professionals who also seek for instant yet healthy products are also a target market for
Gardenia.
Objectives

To acquire significant share in the new target market


To increase market share by 5 % over the next two years
To increase demand for Gardenia products
To expand its channel distribution in other parts of the Philippines and other countries in Asia

Marketing Program Positioning Strategy


The management wants the brand Gardenia to be positioned and associated with the qualities of
freshness, good taste, and uniqueness. It also wants the brand to be associated with a diverse product
line and ready-to-eat products. It wants to be positioned in the minds of the consumers as the top,
growing brand of bread company.
Marketing Mix Strategy
A. Product Strategy
Gardenia Bakeries Philippines should continue innovating by producing new products and product
lines that will cater larger market needs and preferences. The company should continue producing
quality, fresh, tasty, nutritious, and instant products to maintain loyal customers and gain more
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32

customers. They should also adapt to changes by improving their products packaging design and
offering new flavors that will suit the markets needs and preferences.
According to the survey conducted with 31 respondents (See Appendix), the suggested new
products/product lines for Gardenia are; Gardenia-to-go (ready to eat sandwiches), Biscuits, Cookies,
Mamons, Ensaymadas and Gardenia spreads, jams & marmalade are the new products Gardenia
Bakeries could produce to increase demand and market share. Here are the lists of the new products
with its descriptions:

Gardenia-to-go (ready to eat sandwiches)- Tuna, Bacon and Egg, Ham and Cheese, TLC

(Tomato, Lettuce and Cheese), Chicken sandwiches


Biscuits- Healthy biscuits with dip of different flavors (Chocolate, Strawberry, Vanilla, Ube-

Cheese), biscuits with fillings of different flavors (Chocolate, Strawberry, Vanilla, Ube-Cheese)
Cookies- Sugar-free/Wheat Cookies for health conscious customers
Mamons & Ensaymadas- Fluffy Mamons and Cheesy Ensaymadas
Gardnenia Spreads- Choco Hazelnut, Choco, Ham, Chicken, Peanut Butter, Tuna Spreads
Gardenia Jams & Marmalades- Blueberry, Strawberry, Coconut, Pineapple, Mango

Gardenia should also improve its packaging to attract more customers and ensure the quality of its
products. The suggested packagings according to the survey are; Zip-Lock pack, Box-form (Travelpack, Picnic-pack, etc), Zip-Lock pack, and Mini-size Sandwich.
B. Distribution Strategy
Since the start of Gardenias operations, its distribution had grown rapidly. Gardenia is now considered
as the most widely distributed loaf brand in Metro Manila and other parts of the Philippines such as
Isabela, Abra, Cagayan, and Ilocos provinces in North, Bicol and Sorsogon in the South, and Negros
Samar, Antique, Iloilo, and Leyte in Visayas region and other parts of Mindanao.
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33

Manufacturer Wholesaler Retailer Consumer


Manufacturer- Gardenia should continue using hi-tech and advanced machineries and equipments in
producing their products. Gardenia uses the traditional American Sponge and Dough bread-making
method to bake soft-textured loaf with a tender crust and distinct taste. This unique method ensures
that Gardenia's bread stays fresh longer and tastes so good you can even eat it on its own.
Gardenia should enhance and expand its manufacturing facilities to produce more high quality, tasty,
and fresh breads to be distributed and offered to its customers.
Wholesaler- Gardenia pioneered a unique distribution system, ensuring that only fresh breads reach
customers every day. Gardenia should continue its international policy of keeping only fresh stocks on
the store shelves. Delivery vans leave the production plant as early as 4 oclock in the morning to
distribute the products in specific locations nationwide as soon as it is produce from the factory.
Gardenia Philippines always replace unsold breads with their freshly baked premium quality breads
and other products. This is to earn wholesalers trust that their products are of good quality and will be
patronized by sellers and customers.
Gardenias wholesalers should improve its marketing strategies through different promotional strategies
such as offering product bundles, discounts, and coupons, to attract retailers and other sellers to offer
the products to several customers.
Retailers- Gardenia should maintain its good relationship with the retailers offering their products by
following their rules and regulations and offering them good deals and benefits to have a good position
in their stores. Gardenia should provide evidences that will ensure that their products will be bought by
several customers.
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34

Retailers such as supermarkets, hypermarkets, convenience stores, bakeries and other retail stores
selling Gardenia products should improve its services and its store atmosphere to satisfy its customers
and make them buy their products. They should also conduct different promotions such as buy 1 take 1,
product bundles, discounts, patronage reward such as coupons, raffle tickets, etc. to remain loyal
customers and gain new customers.
Gardenia Stand-Alone Stores- Gardenia should build stand-alone stores that will offer all their products
to several customers. Since one of the qualities customers are looking for a product is its availability
and convenience in buying it, Gardenia should make its products widely available in locations
convenient and accessible for their customers. Kiosks should be placed in MRT stations, bus stations,
and other locations where customers usually look for ready to eat products.
C. Price Strategy
Maintain premium pricing for Gardenia
- It used to maximize profit in areas where the customers of gardenia are happy to pay more,
where there are no substitute for the product, where there are barriers to entering the market
or when the seller cannot save on costs by producing at a high volume.
D. Promotions Strategy
Gardenia should build brand preference among C and D market while strengthening hold of the A B
market through high impact advertising and promotions. Gardenia will maximize the use of online and
online advertising.
Integrated Marketing Communications (Promotion) Strategy

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35

Integrated Creative Message Strategy

- So good you can even eat it on its own or masarap kahit walang palaman

Advertising

Sales and Promotional

- Tie up some events and festivals.

Publicity/pr

- Conduct a survey house to house to reach house wives/house people and introduce their products,
give sample and collect feedback.

Digital Marketing

- Gardenia Bakeries will use push/pull digital marketing.

Collaborate general knowledge quizbee competitions on highschool campuses and product

innovation contest on universities


IMC OBJECTIVES
Gardenia Bakeries objective should be expansionary, given its current standing in the market. A market
leader can maintain, grow and prospect its position in the market by employing strategies focused on
the following:
a.
b.
c.
d.
e.

To acquire loyal customers.


To encourage more frequent usage form consumers.
To find new uses of product.
To increase sales.
To establish Brand Recall.
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36

BUDGET
Print Advertisements (leaflets, tarpaulins etc)
- Leaflets will contain the basic facts such as price, appearance and basic nutrient contents. This
is intended to be distributed to the public markets and stores during the launching of the
products. Tarpaulins will contain the layout of the leaflets and to be posted on the distributing
places of the products all over the Philippines.
Php 50,000.00
Media Advertisements (Radio and TV)
- An effective attention getting advertisement will be aired on the different channels of media.
Php 1,000,000.00
Commissions
- It will be given to stores and distribution channels that sell the product. A 15% of the sales will
be given to the distributors.
Php 2,250,000.00
Purchase Discounts
- It will be given to the customers that will be purchase the 10 pieces packs of the product
during peak seasons such as Christmas sale. A 20% discount on purchase price will be given.
Php 3,000,000.00
Free Taste
- This will be done during the launching of the product. Samples of the product will be
distributed to the customers through the product stall in different distribution channels
nationwide. Php 65,000.00
Php 15,000,000.00 (estimated sales related to pan de sal per year)
Marketing Implementation
A. Structural (Internal)
Team buildings in the company and in the factory will enhance the capabilities and strengthens
the power of work force in the company of Gardenia bakeries.
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37

Time to time inspecting of machines in the factory would help to avoid malfunction of machineries.
Gardenia could do marketing programs like giving rewards to the employees that will make them
motivated and inspired to their work.
B. Tactical Marketing Activities
Specific Tactical
Activities
Product Activities
Launch the new
Gardenia products:
Gardenia Spreads
Gardenia Jams and
Marmalade
Gardenia Ready-ToGo Sandwiches
Gardenia Cream Filled
Biscuits
Gardenia Filipino
Biscuits
Gardenia Mamon and
Ensaymadas
Pricing Activities
Christmas Package
Basket (Consumers
can buy Christmas
basket filled by
Gardenia products,
this basket may serve
as their Christmas gift)
Bundle Promo
(Bundle promo is
suggested to help
consumers save)
Pasalubong Bundle
Pasalubong bundle is

Person/Department
Responsible

Required Budget

Completion Dates

Marketing Department

31, 500, 000

January 2014December 2014

10,500,000

March 2014December 2014

Operations Department
Finance Department

Marketing Department
Operations Department
Finance Department

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38

March 2015December 2015

also created to help the


consumers save by
buying in bulk than by
piece.)
Discount Coupons
Distribution/Supply
Chain Activities
Stand Alone Stalls
Food Kiosks
- All kiosks and
stalls would be
placed on more
foot traffic
areas and
where people
are always on
the go like
MRT and LRT
stations,
schools and
universities
and other
transport
stations.
IMC (Promotion
Activities)
1.Launch Gardenia
Bread Apps for Kids
- Gardenia would
launch apps that would
be very interactive to
children and definitely
an educational one.
2. General Knowledge
Quizbee on
Highschool Campuses
- this is to promote
education and to create
brand awareness and

Marketing Department
Operations Department

21,000,000

January 2014March 2014

Finance Department

Marketing Department
Finance Department

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39

January 2014December 2016

recall
3. Product Innovation
Challenge and Search
for the new Gardenia
flavors competition
on top performing
universities
- collaboration on
universities would be
held for product
innovation specifically
on marketing students
and search for the new
flavors competition
that would target
HRM and culinary
students.
4. Launch new
interactive website
- Website would be
more fun and
interactive, blogs
would be posted that
would advise
consumers regarding
healthy living.
5. Gardenia Photo
Contest
- Gardenia will look
for the best family
photo promoting
family bonding while
enjoying Gardenia
products.
6. Gardenia Give Love
on Christmas Day
- Consumers would be
highly encourage to be
part of the Gardenia
Outreach program that
would benefit
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40

homeless families.
7. Use of the
Traditional Media
- placements of ads on
magazines and
newspaper, placing ads
on radio and TV to
increase brand
awareness and recall.
8. Maximize the use of
Social Media
- Gardenia will use
social media to hype
the market about
Gardenias new
products and will use
contests and games on
the following social
media platforms like
Twitter, Instagram and
Facebook.
9. Support Fun Run
and Sports Clinic.
10. Conduct Baking
Workshop Activity
during Summer for
Kids.

Monitoring and controls


A. Marketing metrics
Product-Based Metrics
Customers
Customer feedback through surveys
Customer feedback through social media accounts and website
Measuring the size of the market through referrals, word of mouth and
awareness
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41

Quality of Product
Through customers comments and suggestions
Through number of sold to customers
Sales Volume
Conducting sales report on a weekly, monthly, quarterly and whole year
basis for the advertising media, events and sponsorships.
Market Share
Conducting research on market share information
Collecting data from Primary and Secondary data
Marketing Programs
Evaluation of market program implementation
Measuring effectiveness of strategies
Feedback from the customers
Conduct marketing audits

2. Secondary data
The company could collect secondary data from:

Local Newspaper
Annual reports
Customer communication
Government
Industry research and survey
General business publications
Social networking sites
News releases

3. Primary Data

Customers
Employees
Consultants
Suppliers
Salesforce
Survey
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42

FORECASTS AND BUDGET


3 years (2011-2013 (weighted moving average))
YEAR
2011
2012
2013

INCOME
2,000,000,000
2,500,000,000
3,500,000,000

WEIGHT
.2
.3
.5

RESULT
Php 400,000,000
Php 750,000,000
Php 1,750,000,000

BUDGET
3,500,000,000 x .03= 105,000,000 ALLOTED BUDGET for 3 years
ACTIVITY/PROGRAM
Creation of New Products
Pricing Activities
Traditional Media (Print, Radio and

BUDGET
31, 500, 000= 30%
10,500,000= 10%
21,000,000= 20%

Television Ads)
Distribution/Supply Chain Activities
Other IMC (Promotion Activities)
Contingencies
TOTAL

21,000,000= 20%
15,750,000= 15%
5,250,000= 5%
Php 105,000,000

SOURCES:
http://www.ohiodominican.edu/uploadedFiles/Library/CoursePages/Courses/Bus/Bus498/SWOT
%20Matrix%20and%20Organizational%20Strategic%20Plan%20Paper.pdf
http://www.uniassignment.com/essay-samples/management/management-in-the-food-processingindustry-management-essay.php#ftn9

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43

http://www.euromonitor.com/baked-goods-in-the-philippines/report
http://pana.com.ph/gardenia-is-happy-to-be-part-of-the-filipino-household-for-15-deliciousyears/
http://gohsookching0307949.blogspot.com/2013_06_01_archive.html
http://www.misterpullman.com/#!pastries
http://www.marbyfoodventures.com.ph/MarbyProducts.html
http://panacup.wix.com/panacup#!about_us/c1se

APPENDIX
Survey Online Question

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45

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47

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49

SURVEY RESULTS CHART PRESENTATION

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50

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SAMPLE NEW PRODUCTS

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