AGRICULTURAL ECONOMICS Department of Agricultural Sciences College of Agriculture Xavier University, Ateneo de Cagayan

Shian T. Tigulo BSA-4 AGRI 107 B LABORATORY EXERCISE # 4 The success of Potato Corner

January 4, 2012 Mrs.JerelynMedalla

INTRODUCTION If one ventures into the fries business, the current trend would be franchising. Through franchising, it is easy to proliferate the market. To a well-known business such as potato corner, it gives advantage to franchisers because customers are well-aware of the product--- good and unique taste that the customers would love. Moreover, materials, equipment and labor makes it more accessible to franchisers. OBJECTIVES a. Identify a certain enterprise that became influential and successful in the business world. b. Review the firms history, know the strategies used, its challenges and achievements c. To be able to identify and determine the factors to consider in becoming a successful entrepreneur. MATERIALS Pen, paper, laptop METHODOLOGY 1. Each group will do a research on existing successful enterprise; know the history of that enterprise; their strategies (consider the 8 Ps); challenges and achievements. 2. The group will assign one facilitator; documenter; presenter; observer and time keeper for the whole activity.

EXERCISE # 1: A successful story of an enterprise Dunkin Donuts a. History Potato Corner fries began its operation in the Philippines in 1992, the first and original flavored French fries in the country. By 1995, it grew to 70 outletsa mixture of carts, kiosk, counters and dinein shops. It managed to whether 1997s Asian economic crisis and today it is on track increasing revenues by 55% over the last year. At present, Potato Corner has 100 shops, and still on its growing stage. b. Strategies (8 Ps) Products, Packaging and Pricing The table below shows the different sizes, packaging and prices they serve to customers:

Products Regular Fries Large Fries Jumbo Fries Mega Fries Loopy fries Gega Fries Hush Brown Baked Potato Super Fries Trio Fries

Packaging Paper folded Carton folded Cup Cup Carton folded Cup Paper folded Box Box Box

Price P 30.00 40.00 70.00 90.00 65.00 140.00 30.00 ----70.00

Place and Promotion When you franchise with Potato Corner, the inclusion of the packages has the following: Cart/ kiosk Franchise Fee Small wares and equipment Initial supplies and training for franchisee and crew

Prices and terms: Type 1. In-line store with seating 2. In-line Store 3. Kiosk with roof and seating 4. Kiosk without roof and seating 5. Standard Cart Price 800,000-1.2M 500,000-700,000 500,000-600,000 400,000-500,000 350,000 Term 5 years 5 years 5 years 5 years 5 years

6. School Cart

200,000

3 years

Potato Corner Outlets (newly opened branches) Process The potatoes are cooked in vegetable oil with absolutely no transfat. They take 100% Idaho potatoes and cut them just the right length and width, giving the customers perfect fry every time. Their fries are always guaranteed hot and fresh. Physical Environment The outlets and stores provided pictures, labels and prices of the products near the counter area. The products are also arranged according to its group. There are different types of stall which may allow customer to take out or dine in. The physical environment depends on the franchisees location, it can be on malls or school canteens. People The people are very warm, charming and polite. There is enough labor provided because the customers are being served very well. They also provide training and seminars for them in order to improve. SM Consolacion Cebu Robinsons Place Puerto Princesa Palawan Promenade Bldg. Wilson St. San Juan Robinsons Place Calasiao Pangasinan Shop Wise San Pedro Laguna One Corp Center Foodcourt Northstar Mall Iligan Isabella Six American Stores University Foodcourt, Sampaloc Manila

c. Challenges The company struggled to put up its capital 20 years ago. d. Achievements From a company that struggled to put up capital for its first store 20 years ago, Potato Corner has now become one of the fast-rising Filipino global brands. In fact, just in the United States alone, Potato Corner is on course of ending 2012 with 20 stores. By 2013, the flavoured French fries retailer expects to have at least 100 outlets across US. Overall, Potato Corner currently has 307 stores in the Philippines, the United States, Malaysia, Panama and Indonesia.

CONCLUSION a. Students Reflection: (What have you learned from the activity?) Potato Corner had struggled for 20 years to attain what they have now thus all of it is surpassed because they did not gave up, along also with it are a lot of strategical planning and evaluation. From the activity, I have learned that entering a business is never easy. It acquires a lot of time, effort and most especially money. Several challenges also are expected to come so as an entrepreneur one very important characteristic is endurance.

b. Review Questions: 1. What is unique about their product? Potato Corner is unique because it is the first business in the country to sell potatoes with several different flavours that are really attractive and palatable.

2. In your own observation, what are the components or areas to improve in their product? Potato Corner is already very good for me. I think adding a delicious drink would increase their sales.

3. What are your overall recommendation/comments for their enterprise/product? Potato Corner is a very friendly and good business. At all, the enterprise is performing well. I think adding several branches around the world would be a lot better not just to promote their product but the country as well.

REFERENCES Dunkin Donut websites: http://www.dunkindonutsphilippines.ph/

http://www.dunkindonutsfranchise.ph/ http://www.dunkindonuts.com/content/dunkindonuts/en/menu.html http://www.dunkindonutsfranchise.ph/