CHAPTER 2

I. INDUSTRY PROFILE
ChewBicho exhibits to be:

- Part of the Baked Good Industry

- Offers a nutritious donut that is the same with a normal donut but carries
nutrients and benefits.

II. PESTEL ANALYSIS

POLITICAL ASPECT

- Permit will always be needed as ChewBicho will take place in barangays and
several locations.
- To operate, proper taxes must be paid.
- Indirect consequence from government: local government units will add coding
for a specific place, the company will be affected indirectly because the company
will also open online.
- Direct consequence from the government: a specific city or province that the
company has been eyeing closed their doors for new enterprises.
ECONOMIC ASPECT

- When sales in a region come to their peak, the corporation has two options:
launch new items or expand into largely unavailable regions.
- ChewBicho has standardized operations to facilitate franchising and achieve
economies of scale.
SOCIAL ASPECT

- People have different perceptions as we grow in a diverse society.

- Social classes must be considered in developing ChewBicho’s products.
- ChewBicho must look onto the differences of the consumers for better sales and
connection.

TECHNOLOGICAL ASPECT

- Machines and technological equipment such as stand mixers, full fridges, and
commercial ovens will be utilized by bakers as a means of convenience and
easier processing of raw materials of ChewBicho’s healthy donuts.

ENVIRONMENTAL ASPECT
 - 40% of the global plastic production is used for packaging which is used just
once and disposed of later. In food businesses, microwavable plastic containers
are also used which also produce chemicals in the stored food after reheating
them.
LEGAL ASPECT

- Policies and regulations should be properly maintained especially for the

employees.
- Sanitation must be strict to ensure safety and cleanliness
- Wages and salary must be properly compensated
- Pricing must be considerate and adaptive

III. SWOT ANALYSIS

STRENGHTS

- Product exhibits the taste of a normal donut but carries nutrients and numerous
benefits to one’s health
- Donuts have been established in the market
- Has diverse flavors
- Pricing is reasonable and has different prices depending on the consumer’s
preference.
- The concept of vegetable infused donut treats is something new in the market
- Star Wars theme is catchy for consumers

WEAKNESSES

- Only caters one product, donuts.

- Donuts are not new in the market
- Concept is new and people might be skeptical
- Picky eaters might not purchase because of preferences.
- Children are not familiar with “Bicho”

OPPORTUNITIES

- As technology arises, ChewBicho will engage to its advancements that will help
the business to innovate and develop.
- Might produce new and diverse flavors.
- Offers franchises to investors within the country
- Can further collaborate with LGUs to be more accessible to local communities
- ChewBicho may produce more jobs and opportunities to people as they grow.

THREATS

- The baked good industry might be oversaturated

- Because of the demand for donuts, ChewBicho may not be able to catch up,
which can potentially cause issues in the production process
- International donut brands are taking over the donut market.
 - Good are perishable so quality control must be always strict.

IV. COMPETITOR ANALYSIS

1. DIRECT COMPETITORS
a. Krispy Kreme
- Krispy Kreme is a well-renowned global donut brand that has recently branched
out in the Philippines.
- Their best seller is their original glazed donut.
- They may be one of the well-known donuts in the Philippines however they still
sell the generic donut that has no health benefits.

b. Dunkin Donuts
- Dunkin Donuts, in comparison to Krispy Kreme, is also a global donut brand that
has expanded to the Philippines. It is known due to the variety of classic and
premium donuts it offers, are more affordable prices.
- Dunkin Donuts holds a massive market share over the Philippine market as they
built a connection with their consumers.

2. INDIRECT COMPETITORS

a. Julie’s Bakeshop
- Julie’s Bakeshop is a popularly known Filipino owned-brand, focusing on various
baked goods, with no primary focus on donuts.
- This brand has been part of the hearts of Filipinos even before and as they say
this is “maka-masa” or known to be accessible with everyone.
- Julie’s Bakeshop is not as apparent and upfront as of the direct competitors.

b. Gardenia
- Gardenia is a well-known brand of tasty bread in the Philippines today.
- They offer various baked products and some even carry nutrition like their
famous Wheat Tasty Bread.
- The ChewBicho donut is boxed in, it might not be able to actively compete in
these markets.