Rose Bakeshop

Presented to the Faculty of the Business Administration Department

In Partial Fulfillment of the Requirements for the

Course Strategic Management

Arnel A Tadle Jr

2024
Introduction:

In the heart of Rose Bakeshop, where passion intertwines seamlessly with

dedication, a rich legacy of delectable breads has been woven, nurturing Filipino
families since its inception in 1983. Founded by the visionary Ms. Rosaina Go in the
quaint town of San Francisco, Agusan del Sur, the humble origins of this beloved
bakery have flourished into an esteemed name across the regions of Visayas and
Mindanao, boasting an impressive network of over 200 branches that serve
communities far and wide. Ms. Go's remarkable journey epitomizes the essence of
resilience and unwavering determination as she embarked on a transformative odyssey
from Cebu to Mindanao, driven by an unyielding commitment to her dream of providing
wholesome, delicious bread to her fellow Filipinos. Despite encountering myriad
obstacles along the path to success, her indomitable spirit and unrelenting dedication to
her craft propelled her forward, overcoming every challenge that stood in her way.
Today, the proud torchbearers of Rose Bakeshop's tradition of excellence are none
other than Ms. Go's own children, who dutifully carry forward the mantle of their
mother's vision. With a profound understanding of the legacy they inherit, they strive to
uphold the time-honored values of quality, integrity, and innovation that have come to
define the essence of Rose Bakeshop. Embedded within the ethos of Rose Bakeshop is
a fundamental belief that true business success is not merely the result of financial
gains or market dominance, but rather, it emerges from the harmonious fusion of
passion and purpose. As Ms. Go astutely articulates, "What matters most is what the
heart dictates." This guiding philosophy permeates every facet of the bakery's
operation, shaping its ethos and informing its unwavering commitment to crafting
products with an unparalleled degree of love, care, and dedication. From the meticulous
selection of the finest ingredients to the painstaking attention to detail in the baking
process, every loaf of bread that emerges from the ovens of Rose Bakeshop is imbued
with a sense of purpose and pride that transcends mere sustenance, becoming a
symbol of warmth, comfort, and tradition for generations of Filipino families to cherish
and enjoy.

The bakery market stands as a significant segment within the expansive realm of
the food industry, boasting an extensive array of delectable offerings ranging from
traditional bread to exquisite pastries and specialty baked goods. According to a
comprehensive analysis by Next Move Strategy Consulting, the global bakery market is
poised for robust growth, with projections indicating a Compound Annual Growth Rate
(CAGR) of 4.8% during the forecast period spanning from 2022 to 2030. In navigating
the evolving landscape of consumer preferences, two prominent trends emerge,
shaping the trajectory of the bakery market. Firstly, there's a discernible surge in
demand for healthier, organic baked goods, reflective of a broader societal shift towards
wellness and sustainability. This burgeoning trend is fueled by an increasing consumer
awareness of the health benefits associated with organic products and a growing
aversion towards highly processed foods. As a response, bakeries are innovating their
offerings, incorporating organic ingredients, whole grains, and natural sweeteners to
cater to this burgeoning segment of health-conscious consumers. Simultaneously, the
market witnesses a rise in the popularity of artisanal and specialty bakery products,
driven by a confluence of factors including a growing appreciation for craftsmanship,
unique flavor profiles, and evolving dietary preferences. Artisanal bakery products,
crafted using traditional methods and premium ingredients, resonate with consumers
seeking authenticity and superior quality. Similarly, the advent of specialty bakery items
tailored to specific dietary requirements such as gluten-free, vegan, or sugar-free
options caters to the diverse needs of modern consumers, propelled by an increasing
awareness of individual health concerns and lifestyle choices. Amidst these evolving
trends, what renders the bakery market inherently consumer preferable? Firstly, it's the
sheer diversity of products on offer, spanning a wide spectrum from staple bread
varieties to indulgent cakes and pastries, ensuring there's something to tantalize every
palate. This extensive variety, coupled with the inherent affordability and convenience of
bakery products, positions them as a staple in households worldwide. Whether procured
from local bakeries, grocery stores, or cafes, the accessibility of bakery goods
underscores their indispensability in meeting consumer demands for quick and
satisfying food options. Moreover, the bakery market enjoys a distinct advantage in
terms of perceived freshness and quality. Unlike packaged and processed foods,
bakery products evoke an aura of authenticity, with many consumers associating the
aroma and taste of freshly baked goods with superior quality and artisanal
craftsmanship. This perception of freshness serves as a compelling draw, enticing
consumers to opt for bakery products over alternatives, further bolstering the market's
appeal. Furthermore, bakery products carry inherent emotional resonance, often
evoking feelings of comfort, nostalgia, and indulgence. Whether savored during
celebratory occasions or as a simple indulgence, bakery treats hold a special place in
the hearts of consumers, transcending mere gustatory pleasure to evoke cherished
memories and moments of joy. This emotional connection underscores the enduring
allure of bakery goods, positioning them as more than just food items but as tangible
expressions of comfort and happiness. In essence, the consumer preference for the
bakery industry is multifaceted, encompassing factors such as product diversity,
affordability, convenience, perceived freshness and quality, and emotional resonance.
As the market continues to evolve and innovate in response to shifting consumer
dynamics, it remains poised to retain its status as a cornerstone of the food industry,
catering to the diverse tastes and preferences of consumers worldwide.

Choosing Rose Bakeshop is a decision rooted in a profound appreciation for its

rich family legacy, which runs deep within its identity. As a cherished family-owned
establishment, Rose Bakeshop proudly upholds a tradition of passion and dedication
that transcends generations. This enduring legacy speaks volumes about the core
values instilled within the company, fostering a profound sense of trust and authenticity
among its diverse customer base. The notion of a family legacy evokes a sense of
continuity and unwavering commitment to quality that is truly unparalleled. Knowing that
Rose Bakeshop's roots are firmly anchored in the bonds of family instills a sense of
confidence that every product is meticulously crafted with care and attention to detail, as
if each treat were prepared for cherished family members themselves.

Moreover, the family-owned aspect of Rose Bakeshop adds an intimate layer of

personal connection to the brand. It's more than just a business; it's a reflection of the
family's deeply held values, aspirations, and relentless dedication to their craft. This
intimate touch resonates deeply with customers, forging a profound and lasting bond
that extends far beyond mere transactions. In essence, choosing Rose Bakeshop
transcends the simple act of selecting a place to purchase baked goods—it's about
embracing a heritage of passion, dedication, and authenticity that has been
meticulously passed down through generations. It's about actively supporting a family's
remarkable journey and becoming an integral part of their heartfelt story, one delectable
treat at a time.
Welcome, esteemed guests, to an enchanting journey through the vibrant world
of Rose Bakeshop. As we embark together on this odyssey, allow me to extend a
heartfelt invitation to explore the intricacies of our approach to the market. At Rose
Bakeshop, we pride ourselves on our unwavering commitment to excellence, where
every morsel tells a story of quality craftsmanship and innovative flair. Picture a realm
where passion intertwines with innovation, where each creation is infused with the
essence of dedication and ingenuity. Here, at the heart of Rose Bakeshop, we have
meticulously crafted a haven for connoisseurs and enthusiasts alike, where every detail
is meticulously curated to evoke a symphony of flavors and sensations. Join us as we
traverse the vast landscape of our commitment to customer satisfaction, where each
interaction is imbued with warmth and sincerity. At Rose Bakeshop, we believe in
forging meaningful connections with our patrons, ensuring that every encounter leaves
a lasting impression of delight and contentment. So, dear friends, I implore you to seize
this opportunity to immerse yourselves in the essence of Rose Bakeshop. Let us
embark on a journey of discovery together, where the aroma of freshly baked delights
beckons and the promise of culinary bliss awaits. Welcome to Rose Bakeshop, where
passion and dedication illuminate every path, and the journey is as extraordinary as the
destination.

4PS Rose Bakeshop

Product:
 According to David F. Busken In the competitive realm of baked goods, quality
stands as a hallmark of success. Entrepreneurs, such as those featured in "The
Influence of Entrepreneurs" and "The Battle of the Brand," understand that product
quality transcends mere formulation; it embodies a commitment to excellence at every
stage of production. From sourcing high-quality ingredients to employing specialized
techniques for processing fruit fillings, entrepreneurs recognize that attention to detail is
essential to preserve the integrity of their products. Connecting with Rose Bakeshop's
product offerings, the bakery presents a wide variety of freshly baked goods ranging
from breads to pastries, all meticulously made with high-quality ingredients and crafted
with passion and expertise. Rose Bakeshop's commitment to quality aligns with the
principles articulated by entrepreneurs, ensuring that each product meets the highest
standards of excellence. By catering to the diverse tastes and preferences of Filipino
families, Rose Bakeshop ensures satisfaction with every bite, embodying the dedication
to craftsmanship and customer satisfaction emblematic of entrepreneurial success in
the bakery industry.

Price:
Rose Bakeshop employs a comprehensive pricing strategy within its 4Ps
framework, meticulously crafted to align with its mission of providing delicious and
affordable baked goods to Filipino families. With a minimum pricing threshold starting at
5 pesos, the bakery's pricing strategy reflects a balance between affordability and
quality, ensuring accessibility without compromising on excellence.

Place:
In terms of place, Rose Bakeshop strategically positions its products across its
extensive network of over 200 branches spanning Visayas and Mindanao. By
strategically locating its outlets in high-traffic areas such as malls, markets, and
residential neighborhoods, the bakery maximizes visibility and accessibility, making it
convenient for customers to access its products at competitive prices. One of its
branches is located in Medina, near the roads.

Promotion:
Rose Bakeshop's pricing strategy is complemented by targeted promotional
efforts aimed at enhancing brand visibility and driving sales. Through a mix of
advertising, social media campaigns, and promotional events, the bakery effectively
communicates its value proposition to consumers, highlighting its commitment to
quality, affordability, and customer satisfaction.
HOW MARKETING ENVIRONMENT FACTORS OF SWOT ANALYSIS AFFECT 4PS

An enterprise's marketing environment plays a crucial role in shaping its strategic

decisions, including those related to the 4Ps (Product, Price, Place, and Promotion).
Through the SWOT analysis framework, businesses like Rose Bakeshop can assess
the internal and external factors influencing their marketing strategies.

Internal Business Analysis:

In conducting internal business analysis, Rose Bakeshop adopts a
comprehensive approach aimed at identifying its inherent strengths and weaknesses.
This introspective examination encompasses diverse facets of the business, ranging
from the efficiency of production processes to the efficacy of communication and
distribution networks. Drawing upon established frameworks like the SWOT analysis
technique, as advocated by scholars such as Albert Humphrey, Rose Bakeshop
endeavors to glean invaluable insights into its internal capabilities and limitations. By
systematically assessing its strengths, weaknesses, opportunities, and threats, the
bakery can make informed decisions geared towards enhancing consumer satisfaction
and achieving strategic business objectives. This proactive approach underscores Rose
Bakeshop's commitment to continuous improvement and operational excellence.
Regular evaluations across all facets of production and consumption processes further
ensure the optimal functionality and performance of the organization, aligning its
operations with evolving market dynamics and consumer preferences. Through this
diligent internal analysis, Rose Bakeshop strives to maintain its competitive edge and
sustain long-term success in the dynamic bakery market.

External Business Analysis:

In navigating its external business environment, Rose Bakeshop recognizes the
profound impact of external factors on its operations. Acknowledging the insights of
scholars such as Michael Porter and PESTLE analysis proponents, the bakery discerns
the dual dimensions of the external environment: the Micro and Macro environments.
These encompass a spectrum of factors, ranging from industry-specific trends to
broader socio-economic and environmental conditions. Changes within the macro
environment, such as economic fluctuations, environmental sustainability concerns, and
shifting demographic patterns, exert direct influence on consumer attitudes and
behaviors, shaping market demand and consumption patterns. Consequently, Rose
Bakeshop remains vigilant to these external dynamics, understanding that they can
present both opportunities and threats to its business endeavors. Leveraging analytical
tools like the SWOT analysis, the company systematically evaluates external
opportunities and threats, aligning its strategies with prevailing market conditions to
fortify its competitive stance. Moreover, recognizing the interplay between external
factors and the marketing mix, particularly the 4Ps (Product, Price, Place, and
Promotion), underscores the importance of adaptive marketing strategies. By monitoring
and adapting to external forces, Rose Bakeshop optimizes its marketing initiatives,
ensuring resonance with consumer needs and market trends while sustaining robust
business growth amidst dynamic external landscapes. Through this proactive
engagement with the external environment, Rose Bakeshop secures its position as an
agile and responsive player in the ever-evolving bakery market.

Macro Environment:
In recognizing the vast influence of the Macro environment on its operations,
Rose Bakeshop draws upon insights from prominent scholars and strategic frameworks
to navigate market complexities. Scholars like Michael Porter and his Five Forces
analysis underscore the significance of external forces beyond the immediate market,
shaping the broader business landscape. Leveraging strategic analysis tools such as
PEST (Political, Economic, Social, and Technological), the bakery meticulously
evaluates external factors to gain a comprehensive understanding of its operating
environment. This analytical approach enables Rose Bakeshop to discern prevailing
socio-economic trends, anticipate regulatory shifts, and identify emerging technological
advancements that could impact the bakery industry. By proactively engaging with the
Macro environment, Rose Bakeshop remains agile and responsive to evolving market
dynamics, enabling it to seize opportunities and navigate potential threats effectively.
Through strategic foresight and informed decision-making, the bakery strengthens its
competitive position and sustains long-term growth amidst the complexities of the
external business landscape.
PEST Analysis
Political Forces:
In navigating the political forces shaping its operational landscape, Rose
Bakeshop employs strategic insights from scholars such as Peter J. Buckley and Mark
Casson to ensure regulatory compliance and strategic adaptation. Understanding the
intricate interplay between political dynamics and business operations, the bakery
acknowledges the imperative of adhering to stringent food safety regulations, labeling
requirements, and trade policies. Drawing from the principles of institutional theory, as
advocated by scholars like Douglass C. North, Rose Bakeshop recognizes that
compliance with regulatory frameworks is not only a legal obligation but also a strategic
imperative for maintaining robust distribution networks and market access. In regions
where religious dietary laws exert significant influence, such as in Muslim-majority
countries, obtaining Halal certification emerges as a strategic necessity to penetrate and
thrive in these markets. Recognizing the potential repercussions of non-compliance,
including product bans and market exclusion, the bakery remains vigilant in aligning its
operations with prevailing political forces, ensuring sustained market presence and
viability. Through strategic foresight and proactive engagement with political dynamics,
Rose Bakeshop navigates regulatory complexities adeptly, safeguarding its competitive
edge and fostering long-term business resilience.

Economic Forces:
In responding to the dynamic economic landscape, Rose Bakeshop draws
insights from esteemed economists such as Milton Friedman and John Maynard
Keynes to navigate pricing strategies and profit margins effectively. Recognizing the
multifaceted impact of economic forces, the bakery remains attuned to fluctuations in
production costs, inflation rates, and currency exchange dynamics, as elucidated by
scholars like Paul Krugman and N. Gregory Mankiw. Understanding the intricate
relationship between these economic factors and business performance, Rose
Bakeshop strategically adjusts its pricing strategies to mitigate the impact of rising
production costs while maintaining competitive pricing in the market. Moreover, insights
from behavioral economics, as pioneered by Daniel Kahneman and Richard Thaler,
shed light on how economic downturns can influence consumer spending patterns,
affecting demand for bakery products and overall sales revenue. By incorporating these
economic principles into its strategic decision-making processes, Rose Bakeshop
adeptly navigates economic fluctuations, safeguarding its profitability and market
competitiveness. Through proactive adaptation and informed responses to economic
dynamics, the bakery sustains resilience and fosters long-term business success.

Social Forces:
In navigating the intricate realm of social forces, Rose Bakeshop draws upon
insights from renowned sociologists and cultural theorists such as Pierre Bourdieu and
Clifford Geertz to inform its marketing strategies and product development initiatives.
Recognizing the profound influence of social and cultural factors on consumer
preferences and consumption behaviors, the bakery remains attuned to the nuances of
cultural diversity, as emphasized by scholars like Geert Hofstede and Edward T. Hall.
Understanding the dynamic interplay between culture, taste preferences, and religious
observances, Rose Bakeshop adapts its product offerings to cater to varying cultural
norms and dietary practices. During religious fasting periods such as Ramadan, the
bakery demonstrates cultural sensitivity by adjusting promotional activities to align with
local customs and traditions. Moreover, insights from social psychology, as articulated
by scholars like Robert Cialdini and Daniel Kahneman, highlight the importance of
addressing societal concerns such as health and wellness trends in shaping consumer
perceptions of bakery products. In response, Rose Bakeshop proactively develops
healthier alternatives to meet evolving consumer demands while maintaining the
authenticity and flavor profiles cherished by diverse communities. By embracing cultural
diversity and social dynamics, the bakery remains agile and responsive to changing
consumer preferences, fostering meaningful connections and sustaining long-term
relationships with its diverse customer base. Through strategic adaptation and cultural
sensitivity, Rose Bakeshop continues to uphold its commitment to delivering delicious
treats that resonate with the varied tastes and traditions of its clientele.

Technological Forces:
In harnessing the transformative power of technological advancements, Rose
Bakeshop strategically navigates the dynamic landscape with insights drawn from
influential scholars and thought leaders. Scholars like Clayton M. Christensen and
Joseph L. Bower underscore the imperative of embracing disruptive technologies to
drive innovation and market expansion. By embracing digital platforms such as online
ordering and delivery services, the bakery taps into the paradigm shift towards e-
commerce, as elucidated by scholars like Jeffrey Rayport and Bernard J. Jaworski, to
enhance customer engagement and accessibility. Drawing from insights on
personalized marketing strategies advocated by authors such as Philip Kotler and Kevin
Lane Keller, Rose Bakeshop implements tailored initiatives like unique collectible
packaging and digital promotions to forge deeper connections with consumers, fostering
brand loyalty and advocacy. Moreover, insights from technology-driven branding
strategies, as articulated by authors like David A. Aaker, underscore the importance of
leveraging technology partnerships, such as collaborations with music streaming
services, to amplify brand visibility and consumer engagement, thereby driving product
recognition and sales. By embracing technological advancements as a catalyst for
innovation and customer-centricity, Rose Bakeshop solidifies its position as a forward-
thinking industry leader, shaping product development, branding strategies, and
customer experiences in the ever-evolving marketplace. Through strategic adaptation
and proactive engagement with technology, the bakery paves the way for sustainable
growth and continued success in a digitally-driven era.

Micro Environment

Company:
 Rose Bakeshop, established in 1983 by Ms. Rosaina Go in San Francisco,
Agusan del Sur, has grown into a beloved bakery brand across Visayas and Mindanao.
With over 200 branches, Rose Bakeshop is renowned for its high-quality baked goods
crafted with passion and dedication. Rooted in a family legacy of excellence, the bakery
continues to uphold its commitment to providing delicious treats to Filipino families.

Suppliers:
HICAPS is a proud partner of Rose Bakeshop. Over the years, HICAPS has
supplied high-quality ingredients such as chiffon oil, Magic Whizk Whipping Cream, Red
Velvet Emulco, and Royal Victoria Cream Cheese to our valued clients nationwide.

Competitors:
Competitors like Sunshine Bakery. Sunshine Bakery is a prominent rival of Rose
Bakeshop, offering a wide range of freshly baked goods in the same market segment.
With a strong presence and reputation for quality, Sunshine Bakery competes fiercely
with Rose Bakeshop for market share and customer loyalty. In a competitive industry,
Rose Bakeshop monitors to differentiate and innovate, particularly in pricing strategies,
to maintain its edge.
Customers:
Anyone can become a customer of Rose Bakeshop, regardless of age,
background, or preferences. With a diverse range of freshly baked goods to cater to
various tastes and dietary needs, Rose Bakeshop welcomes all who seek delicious
treats made with passion and expertise. Whether craving a traditional loaf of bread or
indulging in a decadent pastry, there's something for everyone at Rose Bakeshop.

Conclusion:
In conclusion, Rose Bakeshop epitomizes a holistic approach to business
management, integrating various strategic elements to navigate the complexities of the
bakery industry successfully. Through an in-depth analysis of both internal and external
factors, utilizing frameworks such as the SWOT analysis, the company harnesses its
strengths while addressing weaknesses, capitalizing on opportunities, and mitigating
threats. The 4Ps framework, pioneered by E. Jerome McCarthy, serves as a guiding
principle for Rose Bakeshop's marketing strategies, ensuring a comprehensive
approach to product, price, promotion, and place. Internally, the company's commitment
to efficiency, quality, and innovation enables it to deliver exceptional baked goods,
meeting the ever-evolving demands of its customers. Externally, Rose Bakeshop
navigates the dynamic macro and micro environments, incorporating insights from
scholars like Philip Kotler and Kevin Lane Keller to adapt its strategies to changing
economic, social, technological, and political landscapes. Moreover, the company's
keen understanding of the PEST factors - political, economic, social, and technological -
underscores its proactive approach to risk management and strategic planning, in line
with the principles advocated by scholars such as Francis J. Aguilar and Igor Ansoff.
Drawing on insights from scholars like Theodore Levitt, Peter F. Drucker, and Robert D.
H. Harwood, Rose Bakeshop emphasizes the paramount importance of customer-
centric strategies in driving sustainable growth. By empowering customers through
initiatives like the "Customer Development and Training" program, the company fosters
long-term relationships and enhances customer loyalty. Furthermore, Rose Bakeshop's
engagement with scholarly research on distribution strategies, as proposed by Anne T.
Coughlan and Erin Anderson, underscores its commitment to optimizing its reach and
accessibility in the market.

In essence, Rose Bakeshop's success lies in its ability to integrate theoretical

frameworks with practical business strategies, fostering innovation, resilience, and
adaptability in a competitive industry landscape. By aligning its operations with scholarly
insights and leveraging its internal strengths to navigate external challenges, Rose
Bakeshop sets a benchmark for excellence in the bakery sector, poised for continued
growth and success in the years to come.

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APPENDIX
SWOT analysis of Rose Bakeshop
Strengths:
 Strong brand reputation
 A family-owned business with a
legacy of passion and dedication
 Strong customer loyalty
 Commitment to ethical business
practices
 Skilled and dedicated workforce
 Efficient production processes
Opportunities:
 Introduction of new products
 Expansion into new markets
 Collaboration with local farmers
 Adoption of sustainable practices
 Technological advancements
 Growing demand for artisanal and
specialty baked goods
 Partnerships with food delivery
platforms for increased
accessibility
Weaknesses:
 Strong competition from local and
international bakeries
 Fluctuations in ingredient prices
 Changes in consumer preferences
towards healthier options
 Economic downturns affecting
consumer spending
 Regulatory changes affecting food
safety standards
 Environmental factors impacting
agricultural supply chain
Threats:
 Increasing competition from local
and international bakeries
 Fluctuations in ingredient prices
 Changes in consumer preferences
towards healthier options
 Economic downturns affecting
consumer spending
 Regulatory changes affecting food
safety standards
 Environmental factors impacting
agricultural supply chain