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Group2 Distributiondraft-1
Group2 Distributiondraft-1
DISTRIBUTION SYSTEM
PROPOSAL FOR
KAMBAL’S EATERY
In partial fulfillment of the requirements
for the subject
DISTRIBUTION MANAGEMENT
(DRAFT)
MAR 211
APPROVAL SHEET
EATERY” is prepared and submitted by Alliyah Amor Ambito, John Denzel Delos
Santos, Ong, John Adrian and Ravelyn Villere in partial fulfilment of the requirements
for the final paper of 2nd year Bachelor of Science in Business Management Major in
Adviser
NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila
TABLE OF CONTENTS
Chapter 1 – Executive Summary
e) Product Offered
g) Competitors Analysis
h) Issues Encountered
i) Competitor Analysis
j) Customer Analysis
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
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:
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
their present system and strengthen their customer relationship with their service for
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
b. Kambal’s–on-Wheels (TRUCK)
the Kambal's on Wheels, to reach more customers in addition to selling its products
Wheels" allows dealers to transport and sell Kambal's products using a cart rather
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
c. Kambal’s–2-Go
- Main goal
Our main objective is to keep our customers secure, especially students being our
Additionally, it can enhance the customer's comfort and the brand's positioning and
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
1. QRCode on Gcash.
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
does not need lots of essential equipment than the first two proposals.
BUSINESS
DESCRIPTIO
N
MARKET ANALYSIS
Issues Encountered
Competitors Analysis &
Costumer Analysis
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.
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.
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
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.
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
As we are now in the phase where the COVID-19 pandemic is slowly being
overcomed, Kambal's Eatery is now able to offer dine in for the customers as it now safe to
interact with people unlike before where it only offers take out of orders. The eatery also has
a first come first serve policy so if the consumers want to buy a lot of foods or have many
Kambal's Eatery must also focus in analyzing the different behaviors of their
consumers so that they can apply it to their business and know what the product is they may
offer that will surely be profitable for them and likeable for the consumers they cater. The
segmentation they serve consists of young people up to adults and it is accessible for
everyone so anybody can easily buy what they crave for in the Kambal's menu.
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:
Equipment
delivery
Table
Set
B. Kambal’s–on-Wheels (TRUCK):
socket Electrical
Ventilator fan ₱1,100 ₱1,100
Equipment
Distribution ₱400 ₱400
board/electrical
panel
Total: ₱18,770.00
(knives, mixers,
Total: ₱ 53,090.00
Equipments
First aid kit ₱288 ₱288
Total: ₱ 976.00
C. Kambal’s-2-Go
POSSIBLE/ESTIMATED TOTAL
CATEGORY
COST
FOODPANDA ₱5,000
GRAB ₱5,000
DELIVERY APP
GRAB ₱5,000
DELIVERY APP
TOTAL: ₱30,000.00
NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila
Estimated Cost of
Implementation
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.
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
This proposal will allow Kambal’s Eatery to generate a good profit and will definitely help
them open doors of opportunity for more smooth operations when it comes to distribution
and delivery of products from the business to its market. In this modern age where
purchasing and selling is completely in a different sense present in a different market set up,
this can make the brand reach out to their market by (1) Universities Space Store (2)
Kambal’s-on-Wheels (3) Kambal’s-2-Go. Furthermore, this paper will also help the business
to widen its scope and build its name further in the market amidst the competition.
Sales
Market Growth
=0.0563 X 100%
=0.56%
both meals are continuously growing depending on the year but in a manageable manner.
NATIONAL UNIVERSITY
551 M. F. Jhocson Street, Sampaloc, Manila, Metro Manila
These kinds of meals are very marketable in the area wherein the business operates as the
people’s demand grow based on what is trend and what they need. In addition, the rising
popularity of online food delivery and on the go eating is a point of argument. If the proposal
will be executed right, the brand will be known in the market ad its name will be built
righteously. It will also be easier for the brand to deliver its product to the market and have a
Considering one store (of Kambal's) and the present state of the economy,
Kambal's on Wheel and University Space Store will make it reach the market.
Customers who are unable to purchase through their own ways will be quite
happy with this mode of distribution because their access to it will no longer be
limited. We suggest this kind of method to cover those sectors of our target
2. Convenience.
It would provide the idea that this eatery is always in their sights anytime
universities) in the shape of a little store, on wheels, and delivery. When it comes
3. Dependability.
Our proposal is to raise the distribution's service quality; its standing with
customers will be designated as a new quality class. From the perspective of the
(Proposal nearly targets all location where market can notice them.)
4. Security.
customers safe. Today, going outside in the middle of the night is risky, thus the
generation use technology. Since delivery is only a single click away, it is simple
Maintaining our relationships with current customers will always be our top
priority, and with these new distribution systems, we can confidently anticipate
that they will be even more satisfied as our brand becomes more flexible in terms
of distribution. This means that the capability rate and the likelihood to purchase
from Kambal's will potentially rise as we work to improve their access to purchase
more.