MMSU

MARIANO MARCOS
STATE UNIVERSITY
College of Business,
Economics and Accountancy
John Michael A. Cua Operation Management BSBA HRM II-B MWF 11:00-12:00

Gardenia Bakeries Philippines Inc.

(SWOT analysis)
Gardenia Philippines offers a wide array of superior bakery products including white,
wheat and health breads, flavored loaves, pandesal and snack items like snack cakes, muffins and
toasts. Gardenia breads are known for their good taste, freshness, softness, oven-baked aroma and
nutritive value. The popular Classic White Bread is cholesterol free and bromate free, has zero
transfat, and is vitamin and mineral fortified, exceeding DOH recommendations. Its product slogan
“So good…you can even eat it on its own” best describes the product benefits.

1) Strength
Gardenia is the top-bread maker which a very strong brand name which accept by
consumer. Popularity and high customer awareness of the Gardenia brand in the regional
markets are attested to by the award of “Category Leader” by Super brands. Th e company
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). This award is a special award which significantly to the general public
and attracting key demographic customer groups, built upon a unique philosophy.

Product innovation and development is a key area that helps Gardenia keep up with
changing consumer demands. Without media advertising, Gardenia still able target the
consumer based on the way Gardenia packaging and the way to be present. Philippines
strengthened its distribution network by expanding its retail. Gardenia is the first company
which using G-lock to ensure the freshness, aroma and taste of the product. G-lock contains
all of the important information that the consumers might need such as product expired
date, production line the bread was produced and the batch number. In additional, Gardenia
quality and freshness come first. They are strictly for the freshness and quality of bread.

2) Weakness
Increases in the cost of raw materials and energy have been remarkable in this
recent year. Over the past two years, there have been increase the price pressures especially
in price for flour and fuel. Therefore, adjusting prices are difficult task for Gardenia.
Although increases are kept to the minimum, consumer purchasing power is still low.

3) Opportunity
Gardenia continuing to looking suitable plant manufacturing location in Northern
Mindanao instead of Cebu for its planned expansion in the south. Gardenia is believed on
using quality of water supply also one of the issues to produce quality bread. Besides that,
MMSU
MARIANO MARCOS
STATE UNIVERSITY
College of Business,
Economics and Accountancy

Gardenia is fast track the implementation of its US$17.6million bread manufacturing

expansion program to meet increased demand of bread. They are investing in another new
production line adding another 2000000 loaves per day capacity. Gardenia launch Pedi cart
for those who wish to venture in micro-entrepreneurship. It provides opportunity for
individuals, families, housewives, others wanting to start a business can have a change
venturing in this profitable project.

4) Threat
Unfortunately, the developments are driving the threat of a possible over saturation
of the market, as mainstream retailers are beginning offer more variety of bread like the
bakery shop or others related Bread Company. Unstable of economical is the major threat
for Gardenia. It affects the pricing and the consumption of consumer.