NATIONAL UNIVERSITY

551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

DISTRIBUTION SYSTEM
PROPOSAL FOR
KAMBAL’S EATERY
In partial fulfillment of the requirements
for the subject

DISTRIBUTION MANAGEMENT

(DRAFT)

Ambito, Alliyah Amor

Delo Santos, John Denzel
Ong, John Adrian
Villere, Ravelyn D.
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

MAR 211

APPROVAL SHEET

This study entitled “DISTRIBUTION SYSTEM PROPOSAL FOR KAMBAL’S

EATERY” is prepared and submitted by Alliyah Amor Ambito, John Denzel Delos

Santos, and Ravelyn Villere in partial fulfilment of the requirements for the final paper

of 2nd year Bachelor of Science in Business Management Major in Marketing

Management of National University, Manila has been examined and recommended

for approval and acceptance.

Mr. Ronald C. Barriga

Adviser
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

TABLE OF CONTENTS
Chapter 1 – Executive Summary

a) Short Overview of the Business

b) Statement of New Distribution System Purpose

Chapter 2 – Business Description/ Market Analysis

c) Market Segment Serve

d) Actual Market Share

e) Product Offered

f) Current Distribution System

g) Competitors Analysis

h) Issues Encountered

i) Competitor Analysis

j) Customer Analysis

Chapter 3 – The Proposal

k) Diagram of the Proposal

l) Needed Equipment or Resources

m) Estimated Cost of Implementation

Chapter 4 – Proposal Outcome:

n) Possible Effect:

Sales

Market Shares

Market Coverage

Chapter 5 – References
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

EXECUTIVE
SUMMARY
Short Overview of the Business &
Statement of the New Distribution System and its Purpose.
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Overview of KAMBAL’S
EATERY

Kambal's Eatery is a small local eatery that offers a variety of fried foods to

its customers, including fried chicken, pork chops, chicken fillets, hot dogs, eggs,

fish, luncheon meat, pancit canton, and fried rice. Manolito Delos Santos, the owner,

and head chef of the eatery, founded it in 2012. The owner's twin brothers, John

Daniel and John Denzel Delos Santos, who also assist him in running the business,

served as the inspiration for the name "Kambals's Eatery." Every Monday through

Saturday, the eatery opens at 2:45 am and closes between 4:30 and 5:00 am. It

gives freebies like soup and chili and caters to all customers, including children and

adults.
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Purpose of the Proposed

Distribution System
Kambal’s Eatery has been present in the market for over ten years now.

They began with a simple meal in the morning and gradually increased their menu to

include silog and other meals. Since Kambal's Eatery is the only eatery open until

midnight and is also very budget friendly, it is very popular among students and

tricycle drivers. Our observations suggest that one of the things limiting their

performance in the market is the traditional channel or distribution system they use.

They were stiff and ineffective because they couldn't adjust to the new distribution

system. This leads us to design a new distribution system with the following goals:

 To develop a flexible and effective distribution system that will enable

the company to compete successfully in the market.

 To improve their brand's positioning and image in the marketplace.

 To make sure they are visible to and accessible to their customers.

 For the convenience of the customer.

 To position them in a leading spot near their target customers.

The main purpose of this paper is to come up and develop the chosen business’s

distribution system to help them with how their business works and run-in connection

with their distribution system specifically with the deliveries and up until reaching to

their target market. This will also help the business to minimize its cost and maximize

the available resources for them to improve their sales. Our team’s solely goal is to
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

provide recommendations, suggestions, and even knowledge on how to enhance

their present system and strengthen their customer relationship with their service for

better brand image and business experience.

a. Universities Space Store

University Space Store is a rented spaces located near every university in U-

belt. The dimensions will be 60sqm and up depends on the desire of the dealer. Our

main objective with our university space store is to promote the brand and the dealer

in attracting, serving, and being more conveniently located for Kambal's target

market (mostly students).

b. Kambal’s–on-Wheels (TRUCK)

Our second distribution proposal is the Kambal’s-on-wheels. A proposal for

Kambal's to venture outdoors in a distinctive yet risky method is made, so we call it

the Kambal's on Wheels, to reach more customers in addition to selling its products

through stalls and separate branches. A distribution method known as "Kambals on

Wheels" allows dealers to transport and sell Kambal's products using a cart rather

than a regular store or stall. Reaching a greater market of customers, especially

those beyond the U-belt, has been its primary goal. Although this plan carries some

risk, Kambal's on wheels will make it simpler to locate the target market and potential

customers by helping you navigate the road.

 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

c. Kambal’s–2-Go

Using Kambal's-2-Go, we can place our products on FoodPanda, Grab,

and other delivery apps for online delivery.

- Main goal

Our main objective is to keep our customers secure, especially students being our

primary target market since it is risky to go outside at midnight only to eat.

Additionally, it can enhance the customer's comfort and the brand's positioning and

image in the market.

- Valuing Social media presence

Kambal’s must value its social media presence because it is important for advertising

and maintaining in touch with its customers. Therefore, we want to offer home

delivery 24/7.

We would like to recommend the updated and logical digital transaction forms in

relation to Kambal's-2-Go. Cashless transactions are possible, like the FF:

1. QRCode on Gcash.

2. Beep Cards for payment (Gong Cha started to do this).

3. Debit and Credit cards (Highly useful for mall space, mini stores, and food

trucks).

Added information:
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

a. Kambal’s on wheels will operate by just hitting the road since it is more

effective in reaching customers rather than staying in just a single place. It

does not need lots of essential equipment than the first two proposals.

BUSINESS
DESCRIPTIO
N
MARKET ANALYSIS

Market Segment Serve

Actual Market Share
Product Offered
Current Distribution System
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Issues Encountered
Competitors Analysis &
Costumer Analysis

Kambal’s eatery Market

Segmentation
Location: Sampaloc Manila.
GEOGRAPHIC
Density: Urban
Climate: Hot/ Summer

Age: 12 years old and above (targets are teenagers

and young adults)
Gender: For all genders
DEMOGRAPHIC Income: For low-income class to Upper class.

Occupation: targeted for students, workers, young

professionals, homebodies.

Personality, Values, Attitudes, and Activities:

 Looks value for money
 Looks for convenience in purchasing
PSYCHOGRAPH  Values comfort, convenience, and money
 Some are price conscious
IC  Some are price conscious
Lifestyle: Students, workers; mostly dependent on
Parents; people with dietary lifestyle.
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Benefits, Occasion (Rate of Usage), Patterns:

 Seeks for the value of money
 Seeks for practicality in price and convenience
 Purchase a product depending on the
BEHAVIORAL convenience needed (online food delivery
dependent, order food outside the usual
operation time, etc.)

Online Activities:
• Owns a smartphone, laptop/personal computer,
and tablet
• Strong presence in social media (Facebook,
Technographics food delivery application specifically)
• Uses internet for searching about food brand
and details
• Use internet mostly daily

Psychographics
The market looks for the value they are paying for not mentioning their
backgrounds. They value their convenience as they decide to do their purchase as
well. The accessibility of the shop as well as its offering pave the way to more
interest the market has in purchasing and bring a strong point for consumers. Some
are relying with the trend of food offering and even mode of purchasing (online
purchases and online food delivery). Some are price-conscious, and some are not
but given this fact, since their parents are the one who purchase on their behalf, they
are still dependent on the price-conscious individuals. But mostly, the people who
tend to purchase are those who seeks for comfort with the offering.

Behavioral
The market seeks for a product offering that shout for practicality, value, and
comfort. Also, a lot in this present market seeks for the value of money as they
purchase as well as with the practicality in price and in convenience being made.
Also, people are into purchasing a product depending on the convenience they
needed in each time (online food delivery dependent, order food outside the usual
operation time, etc.). With this brand loyalty is somehow moderately access since
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

the market has the power to other brand or store where their convenience is
available.

Technographics
Majority of the market nowadays own a smartphone and other advance
gadgets that is mainly used to scroll online and purchase items even food products
anytime anywhere. People nowadays have the power to depend more on online
purchasing and delivery as they wish through the presence of store online.

Kambal’s eatery Market Share

Figure 1, Market Shares of Kambal’s Eatery

The figure above shows the actual market share of Kambal’s Eatery and its
competitors. Nonoy’s Eatery is its leading competitor in the area with 25% of market
share having 2% leading with Kambal’s. The Kambal’s Eatery have the 23% of the
market offering its lutong bahay that caught the heart of its market. The second
competitor is No Rich Parents Kitchenette that also offer lutong bahay. Other
competitors with lower s=market share is as shown above. Considering that there
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

are a lot more competitor of the brand, Kambal’s Eatery still maintain to have a high
market share than its competitors who actually offer somehow the same offering as
Kambal’s that focuses with lutong bahay.

Products Offered by Kambal’s

The product offered by Kambal's

Eatery is divided into four categories in

their menu and it’s mostly consisted of

fried foods. The first category is the “Silog

meals” in which they offer meals that have

an egg as a side dish such as Chicksilog,

Porksilog, Tapsilog, Bagnetsilog,

Bangsilog, Bacsilog, Tocilog, Shanghai

Zagu’s latest menu according to their official website
silog, Hotsilog and siomai silog. The

second one consists of rice meals which

doesn’t have a side dish but comes with

Figure 2, Kambal’s Offerings special sauces such as pork tonkatsu,

buffalo wings, and shawarma rice. The other two categories focus on snacks and

finger foods that doesn’t include rice which is the “Pulutan and Snacks” group that

consists of sandwiches like chicken/beef burgers and finger foods such as fries,

cheese sticks, dynamite, fried siomai etc. The eatery aims to satisfy the cravings of
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

the Filipinos who wants affordable meals but will surely satisfy their stomachs. The

foods they offer are easy to cook and easy to serve so the customer will no longer

have to wait for a long time to receive their order.

KAmbal’s Current
Distribution System

The distribution system of Kambal's Eatery does not include too much
process at in only uses one level distribution in which they only get stocks and
materials from the market which also stands as the manufacturer and then produce
something nee to the products such as adding flavors, mixtures, and cuts to the
foods before finally selling it directly to the customers.
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Issues Encountered
Kambal's is known for distributing its products mostly through one eatery,
which is one of their strategies for gaining market share quickly and expanding to
new areas. The business began to make money as time went on, and the increased
consumer caused several problems with their distribution system. 

 Every student started to have problems because there is only one

branch of Kambal’s and it’s 15 mins away in their campus. They will
walk every lunchtime and, in the morning, solely to eat at Kambal's,
which results in them eating three minutes away from the campus.
Although these circumstances don't directly give the restaurant bad
feedback, but it will cause a decrease in sales.
 Since there are many customers arriving every morning, one issue is
the delay in the order, which causes a person to be late for work and
for school. The student is forced to eat in an expensive and
unappetizing food in a less crowded area close to their university or
workplace.
 Many customers are asking for deliveries on the owner's Facebook
page when it comes to delivery. Since it is risky for the customers to
leave past midnight. These kinds of situations might give Kambal's a
bad reputation, which would limit its ability to be flexible in how it
delivers its products to its customers.
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Competitors Analysis
Competitors Description Competitors Strength
Nonoy’s Eatery  Located at Sampaloc  Good customer
Manila service
 They offer different  Localize taste
kinds of Lutong  Close to the
Bahay and silog customer
meals  Customer loyalty
 Great customer
experience delivered
No Rich Parents  Located at Sampaloc  Attractive store
Kitchenette Manila design
 No Rich Parents  New and refreshing
Kitchenette also offer  Modern and relaxing
Lutong Bahay environment
 Good location
Breccs Canteen  Located at Sampaloc  Localise taste
Manila  Good customer
 They offer sizzling service
meals and Lutong
Bahay
Batangas Lomi Pancitan  Located at Sampaloc  Customer loyalty
Manila  Clearly differentiated
 They offer Batangas products
Lomi, Pancit and  Localise taste
silog meals
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Customer Analysis
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

THE
PROPOSA
L
Needed Equipment or Resources
Estimated Cost of Implementation &
Diagram of the Proposal.
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Needed Equipment/materials
and its Costs
A. Universities Space Store:

Material and Price Quantity Total Price

Equipment

Pop-up Gazebo ₱7,999 1 ₱7,999

Personal tablet for ₱6,495 1 ₱6,495

delivery

Monoblock Table ₱761 6 ₱4,566

Monoblock Chair ₱200 30 ₱6,000

Foldable Wood Catering ₱2,100 2 ₱4,200

Table

Food Storage Display ₱3,811 2 ₱7,622

Set

Food Glass Display ₱4,999 1 ₱4,999

Plastic plates and ₱3,000 1 ₱3,000

Utensils and Drinkwares

Paper Napkins ₱1,000 1 ₱1,000

Outdoor coolers ₱1,000 1 ₱1,000

Food Storage Boxes, ₱1,000 1 ₱1,000

Lugs, and Totes

Total Cost: ₱47,881

 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

B. Kambal’s–on-Wheels (TRUCK):

EQUIPMENTS POSSIBLE/ESTIMATED TOTAL

CATEGORY
COST

Led lights (tube) ₱600 ₱600

Light switch ₱70 ₱70

Power plugs and ₱150 ₱150

socket Electrical
Ventilator fan ₱1,100 ₱1,100
Equipment
Distribution ₱400 ₱400

board/electrical

panel

Electric generator ₱16,450 ₱16,450

Total: ₱18,770.00

Cooking materials ₱5,230 ₱5,230

(knives, mixers,

pots, pans, bowls)

Refrigerator ₱13,450 ₱13,450

Microwave/Toaster Essential ₱3,200 ₱3,200

Sink and faucet ₱9,000 ₱9,000

Equipment
Trash can ₱340 ₱340

Main truck ₱501,151 ₱501,151

Fire extinguisher ₱200 ₱200

Plates and utensils ₱520 ₱520

Total: ₱ 53,090.00

Gloves Safety ₱68 ₱68

Aprons ₱200 ₱200

 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Equipments
First aid kit ₱288 ₱288

Towels ₱300 ₱300

Face mask ₱120 ₱120

Total: ₱ 976.00

C. Kambal’s-2-Go
POSSIBLE/ESTIMATED TOTAL
CATEGORY
COST

 FOODPANDA ₱5,000

 GRAB ₱5,000

 OTHER TAX ₱5,000 ₱15,000

DELIVERY APP

 FOODPANDA ₱5,000 ₱15,000

 GRAB ₱5,000

 OTHER CHARGES ₱5,000

DELIVERY APP

TOTAL: ₱30,000.00
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Estimated Cost of

Implementation

CATEGORY ESTIMATED COSTS

A. Universities Space Store: ₱47,881.00

B. Kambal’s–on-Wheels ₱72,836.00
(Truck):

C. Kambal’s-2-Go ₱30,000.00

*Company markup and exclusive added expenses are not yet included.

Diagram of the Proposal

 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Figure 3, Kambal’s Distribution System + proposal

 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Diagram of the Proposal

Figure 4, New proposed distribution Channel

 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

THE
Proposal’s
Outcome
Possible effects on Sales
& Customer Satisfaction
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila

Possible effects
on Sales

Possible effects on Customer

Satisfaction
 NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila