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Marketing Plan for

Mang Inasal
Silang, Cavite Branch

In Partial fulfillment of Requirement for:


Fundamentals of Marketing

Submitted by:
Mandani, Edzer
Paez, Eryl
Paradero, Mikka Gail
Pascua, Angelo
Quizmundo, Patricia Jean
Saldivar, Leonardo Jr.

Date Submitted:
October 08, 2014

Table of Contents
I.
II.
III.
IV.

V.
VI.
VII.
VIII.

Executive Summary
Company Description
a. Business Mission
b. Target Market
Population Analysis of Silang, Cavite
Situation Analysis
a. Industry Analysis
i. Trends
ii. Consumers
iii. Competition
iv. Socio-cultural Factors
v. Technology
vi. Economy
vii. Environment
viii. Political-Legal
b. SWOT Analysis
c. Key Success Factors in the Industry
Marketing Objectives
Marketing Strategy
a. Target Market
b. Marketing Mix
Contingency Plan
Implementation, Evaluation, and Control

EXECUTIVE SUMMARY
This report was commissioned for the proposal of a new product for Mang Inasal-Silang
branch, which will cater the demand of the increasing trend of health and weight conscious
customers who are looking for a healthy product for their healthy lifestyle.
We have found out through our extensive research that there is an increase in the number
of Filipinos, who are dealing with obesity, heart problems, and other health-related issues.
According to our study as of 2011, survey showed that 22.3% of Filipino adults are overweight
and 6.1% are obese and is expected to increase significantly. Most of our products are meat,
which is high in saturated and transfat that can lead to obesity and heart disease. For customers
who are looking for a healthier food, eating in Mang Inasal may not be a good option for them
and this may lead to a decrease in the market share in Silang.
Because there is now this trend of consumers switching in to more-healthy products, the
management of Mang Inasal wishes to grab this opportunity. The labor force of Silang comprises
the 64.38% or 132,994 out of 206,577 persons in the municipality. The management wishes to
appeal more to the students, health-conscious, and price-sensitive consumers of Mang Inasal who
lives in Silang.

Our overall objective is to develop a low priced meal that is suited for health conscious
individuals. Tuna and Malunggay pasta is our proposed product, which will be offered to our
target market. Our product, the Tuna and Malunggay Pasta incorporates the use of Malunggay
Pasta and Tuna as the main ingredients for the main dish. Malunggay is rich in vitamins and
minerals while tuna are rich in protein Omega 3. The benefits of Malunggay is scientifically
proven, which help reduce the rate of having cancer. Tuna, on the other hand, are good for the
heart and helps in muscle build up.
The expected awareness level that we expect after all the promotional efforts (e.g. flyers,
prints ads, television and radio ads) is 60% of the target market or 79,800 individuals.
Of those 79,800 individuals, 45% or 35,910 are expected to try the new product offering of
Mang Inasal. Of those who are expected to learn of our new product offering and tried the
product, an estimate of 25% or 8977.5 are expected to purchase again the product.
Since the expected purchase frequency is one serving per month, we just simply
multiplied 8977.5 by 12 to get the projected sales volume, which is equal to 107,730 servings for
the whole year.
The product will be priced PhP49.00 and will be lined with the Sulit Sarap Meals. A 60%
profit margin is allocated to cover up for all the production expenses and the overhead expenses
that will be incurred in the production and promotion of the said product. A further PhP
3,124,170.00 gross profit is expected to be earned by this product alone. Promotional expenses
will be covered by the expected gross profit since the team has planned various promotional
activities in lined with the launching of the said product.

COMPANY DESCRIPTION
Mang Inasal is one of the most prosperous fast-food chains in the Philippines. Founded by
Edgar Injap Sia II, it started its operations in Iloilo City, Philippines, and the number of
branches currently continues to grow in number. Right from the start, Mang Inasal was already
able to catch the attention of the Filipinos since its products are mostly, if not entirely, Filipino in
nature. Because of its increasing number of branches around the country,

Mang Inasal provides numerous job opportunities to many, whether the available
opportunities are on the supplier, the management, or the employees. Right from the very
beginning, Edgar Sia already spurred Filipinos interests in Robinsons Place, Iloilo City,
Philippines. What he did was he distributed this initial success in Iloilo City to TATC, Roxas
City, Capiz (second branch). He then branched out to Marymart Mall, Iloilo City (third branch),
to Mall of Asia, Manila, and soon afterwards, to the rest of the Philippine Islands.
Mang Inasal is known for the swiftness and accuracy of its services, quality of its
products, and its variety of food choices. The National Meat Inspection Service gave Mang
Inasal a certified Double A on its commissaries (one in Iloilo and one in Manila), assuring safety
when consuming their products. Apart from safety, Mang Inasal also allowed its Research and
Development Department (RDD) to makes sure that all of its products are fresh and hygienic.
The RDD also takes the responsibility of developing new products in Mang Inasals menu. In
order to raise concerns in branches scattered everywhere within the country, Mang Inasal has its
Support System to transmit to its main department and act upon giving remedial solutions. With
cooperation between different departments, Mang Inasal remains to be one of the healthiest
businesses in the Philippines.

A. BUSINESS MISSION
Mang Inasals mission is to provide great-tasting products and quality services to our
customers with a great Pinoy ambience fast food chain nationwide. Develop, motivate and retain
employees in providing benefit programs, employment security and good working environment
by applying new technologies for better and easy way of serving. Do our best to provide quality
products and services to our franchisees with fairness and integrity. Moreover, provide livelihood
programs to the community by treating them as business partners.
B. Target Market
Mang Inasal is a nationwide company. Their emphasis of competition is within
the Philippines. Their target market is the Filipino people. Ages 3 75 yrs. old Class C
and above
POPULATION ANALYSIS OF SILANG, CAVITE
On the local scale, as of 2010, the total number of population in Silang, Cavite is
206,577. Of these, 66,637 or 32.26% are aged 14 years old and below. Those who are considered
part of the labor force comprise the majority of the Silang population with a total of 132,994 or
64.38%. Moreover, the upper minority, those who are aged 65 and above, comprises the
remaining 3.36% of the total population of Silang or 6,946 individuals.

This shows that majority of the population of the municipality of Silang are considered
into the range of the target market of Mang Inasal. However, for the purposes of this marketing
plan, we will be focusing more on the labor force of Silang, which includes high school and
tertiary students, office employees, factory workers and other professionals. We have also
gathered that this age group especially the young adults, are those who are more healthconscious and are more price-sensitive.

Population Distribution of Silang , Cavite according to Age Groups


70,000

66,637
59,173

60,000
50,000

44,016

40,000
29,805

30,000
20,000

6,946

10,000
0
0-14

15-29

30-44

45-64

65 and above

Age Group

Table 1 Population of Silang, Cavite as of 2010, according to National Statistics Office

SITUATION ANALYSIS
1) Industry Analysis
An overview of the fast food industry highlights the availability of meals that serve the
need to eat even during tight work or school schedules, and at very affordable or, most of the
time, cheap prices. Individuals, mostly parents or people who live on their own, who dont know
how to cook or dont have time to cook, find fast foods of great convenience. Some fast food
restaurants also offer packaged foods or take-aways. The fast food industry now operates out
of convenience stores, food kiosks, supermarkets or grocery stores, coffee shops, and gas
stations. Individuals can now eat their food anywhere and anytime. Fast food restaurants also try
to fit their menus according to the taste and preference of the mass. Take for example Mang
Inasal, its barbecued chicken dish is what Filipinos like. The rise of fast food restaurants or
kiosks has often been linked with urban development. This kind of notion can be typically seen
in Filipinos.

a. Trends
Fast food retains its position as the largest and the fastest-growing category in the
Philippine consumer foodservice industry. During 2012, this category reported total foodservice
revenue of P121.9 billion, taking 30% of total value sales in consumer foodservice. Growth in
terms of outlets, transactions and value sales remains vibrant. The increasing number of shopping
centres, and small community supermarkets, in Metro Manila and key cities nationwide, has
supported outlet openings. Outlet growth was estimated to be at 8% in 2012 while transactions
and value sales ballooned by 9% and 11% respectively.

b. Consumers
Table 2 According to National Restaurant Association survey (2013)

Type of consumers

Traditional; 7% Don't know; 4%

Adventurous; 46%
Typical; 44%

Forty six percent (46%) of the consumers tend to be more adventurous, dining out to seek
new tastes and foods they cannot make at home.
The other forty four percent (44%) of the consumers generally order their favorite food
when dining out, but sometimes try trendy menu items.
Seven percent (7%) of the consumers will be more traditional when dining out, only
ordering food that they know. While the remaining three percent (3%) are clueless, as to what
segment they belong in.

This technically describes the behaviors or consumers that we are today. This will be
helpful for this marketing plan, since we will be focusing more on the adventurous type of
consumers.

c. Competition
Competitive Advantage
Unlimited Rice
Good Location

In Silang branch, Mang Inasal has no direct competitor but has an indirect competitor,
which is Hap Chan, a Chinese-style restaurant. Having no direct competition in the vicinity is a
competitive advantage for the Mang Inasal-Silang branch.

Competitors

1.Chic-Boy
According to their web site, Chic-BoyTM is a new trademark and business model of Pier
One Bar and Grill Holdings Corporation, the company behind the successful Pier One Bar and
Grill restaurant chain in the Philippines. Having first tried the delicious and tasty lechon manok
and lechon liempo in Cebu and the Chicken Inasal of Bacolod, Pier One Bar and Grill Holdings
Corporation saw its business potential and the opportunity to tap into the lechon manok, lechon
liempo and chicken inasal industry and therefore, brought the secret recipe to Manila. Chic-Boy
TM opened its first Dine- In store last 05 May 2010 and began offering its Dine-In store concept
for franchise. In just 1 year and 3 months since we opened our first franchised store in Molito,

Alabang, they have grown into a total of eighty five (85) dine- in stores, eighty one (81) units of
which are franchised. Forty-four (44) more franchised stores are under construction.

Chic-Boy has been constantly growing and it is the archrival of Mang Inasal for it also
offers the same level of quality in all aspects, i.e. food and service. Chic-Boy also offers an
unlimited rice and unlimited iced tea, which Mang Inasal pioneered in the Barbeque Fast Food
Industry.

2.Bacolod Chicken Inasal

According to their web site, Bacolod Chicken Inasal is owned and managed by the sisters
and brother team of Rose, Bing and JM Tanalgo, Bacolod Chicken Inasal opened its first
takeout and delivery counter in 1993. It was a small take out spot at EDSA Central Complex in
Mandaluyong City with delivery services to the Ortigas and Mandaluyong areas. The Tanalgo
siblings opted to start out with a small stall to first have a feel of the market in Manila.
Bacolod Chicken Inasal is the oldest of the four but its slow growth and expansion has
been the biggest factor of their small market share even though they are the pioneer of serving
chicken inasal in the metro.

Barriers to entry

5 forces of competition
Competitor
Threat of new entrant
Development of substitute products
Bargaining power of customers
Bargaining power of suppliers

Low

Moderate

high
X

X
X
X
X

Bargaining Power of Consumers


Mang Inasal Philippines Inc. caters to almost everyone regardless of volume, purpose and
location. There are so many branches and it has established its own reputation that the bargaining
power of consumer is weak because the fast food industry principally dictates what masses eat.
The prices for the products and services set by fast food restaurants have become the standard on
how consumers would want to spend on food. Anything above the price range of fast food joints
would be considered expensive; while anything lower would mean it is cheap. Most consumers
think that the prices set by the restaurants are reasonable and affordable because they offer value
meals and other pricing strategies. This just goes to show that the consumers in the fast food
industry really do not have much bargaining power as they think they do.

Bargaining Power of Suppliers


Most fast food restaurants acquire the raw and other materials used for their business
operations from local suppliers and some international. Given that the inventory for the food
served is crucial in any quick service restaurant, the suppliers of these inventories greatly affects
operations. Mang Inasal or any QSR cannot operate if there is no food to be served. Evidentially,
Mang Inasal Philippines Inc. over the years developed their own commissary system to eliminate
the relatively strong bargaining power of suppliers in the industry. Other than those people
manufacturing the food, suppliers in this industry can go way back to the agricultural, meat and
poultry farms and packaging companies.

Pressure of Substitutes on the Business


There are many substitutes for almost everything nowadays. Fast food chains are not
exempted from this because thus the examples of substitute to the menu that Mang Inasal offers
to its consumers. Some of the substitutes are the instant noodles with several flavorings and other
frozen products that can be bought in local and foreign markets. It is important to have rice and a
viand as part of the meals of the Philippine consumers therefore the threat of substitute for what
Mang Inasal is offering to its consumers is considerably high. Anything that can sustain or satisfy
the cravings of a person is a viable substitute for fast food.

Entry Barriers
Mang Inasal Philippines Inc. is aware that it is the procedure on how they make their
distinct mark with their products, which makes them stand out that their patrons choose them
over some other fast food chain. So brand favoritisms of the consumers are a barrier for them to
monopolize the fast food industry. Likewise, the import tax that Mang Inasal has to pay every
time they import their raw materials from other countries could also affect their business as a
whole.

d. Socio-cultural Factors
(+) Positive effect

(-) Negative effect

(+) Filipinos love for food

(-) Changing preference of customers


(-) Rise of other restaurants that offering

(+) The power of media to the consumers


unlimited rice in the market
(+) Working class has no time to cook, find fast
foods for convenience.
The table above summarizes the cultural factors that affect Mang Inasal positively and
negatively. The topmost of the positive factors is the love of Filipino people for food. But the
trend now is for healthy foods since consumers today prefer healthy foods more as compared to
the previous years.
The trend of working mothers is also a plus factor for Mang Inasal since most Moms,
especially those who work, do not have enough time to prepare the familys lunch or dinner. In
turn, they look for fast food chains, which may satisfy their needs.
Trending Barbecue Fast Food Industry

Barbecue fast Food Industry in the Philippines (As of 2011)


450
400

423

350
300
250
200
No. of Stores 150
100
50
0

90

71
20

Table 3
The table above shows that as early as 2011, Mang Inasal dominates the barbecue fast food
industry with 423 branches nationwide. This only strengthens the hold of Mang Inasal as the
leading barbecue fast food restaurant in the Philippines. This also signifies the success of Mang
Inasal in penetrating the Filipino market by expanding its branches nationwide.

According to Family Income and Expenditure Survey, 42.6% of the Filipino households
income was spent on food. The increase in the number of workers who are engaged in business
and administrative jobs, and shifting consumers preferences towards leisure and convenience
resulted to the rise in demand for fast food services. It has now become a trend and routine for
middle class earners to eat at different fast food chains, which causes the presence of 32,000 fast
food outlets in the Metro Manila area only.

Relevance

Mang Inasal, as a part of the barbecue fast food industry, can take advantage of the
increasing trend for this industry. These would help them generate higher income and
increase further its market share. They can also take this opportunity to attract more
customers and outnumber its competitors.

Increase in Number of Potential Owners through Franchising


Filipinos nowadays are engaging into franchising business since it requires less capital
instead of making their own business. Actually, franchising contributes a lot in the growth of the
Philippine economy. According to the Association of Filipino Franchisers Inc. (AFFI), their
members increased to 130 from 75 during the year of 2010. At this moment, there are 1000
brands that are being franchised in our country, which are divided to six principal sectors: retail
(clothing), cafes, fast foods, bakeshops, hospitality and wellness, and food carts. Around $6.6
billion of the Gross Domestic Product of the Philippines or 5% is contributed by franchising.
Franchising also generates jobs for the Filipino people and therefore reduces unemployment. The
top industries in the Philippine franchises are, water refill franchises, since water is a necessity
for every person. Education and training franchises, as fresh graduates look for review centers
for their licensure examination. Bakery, for the very reason that bread has been a part of the
Filipino culture especially pandesal. Bar and caf franchises. Personal care franchises. Servicetype franchises. Last but not the least are fast food chains, restaurants and food cart franchises, as
food is a necessity, and Filipinos loves to eat.

Relevance:

Mang Inasal also offers franchising to the community. In fact, it is one of the fastest
growing franchises in our country. A lot franchisee means more income for Mang Inasal and it
will be introduced to different places especially to those areas where Mang Inasal is not present
yet.

More Filipinos are Moving to Urban Areas


As more Filipinos migrate to urban areas for the reason of better job opportunities, and
many people who are working does not have the time to prepare their own food, it increases the
demand for the packaged food products for an ease in meal preparation. This urges them to eat in
different fast food chains, restaurants and other independent food establishments like the
carinderia for a cheaper food service.

Relevance:
An increase in the demand for packaged food would also mean an increase in demand for
fast food chains where Mang Inasal is a part. More Filipinos moving to urban areas looking for
job opportunities would be a positive factor for Mang Inasal since they can employ workers from
these people and they as well, can be their future customers.

Filipinos are Looking for a Healthier Lifestyle


There is a significant increase in the number of Filipinos, who are having a hard time,
dealing with obesity, heart problems, diabetes and other health-related issues. This, in turn,
makes them more conscious on what they eat. According to the World Health Organization, by
2012, there will be 2.3 billion adults, who are overweight and more than 700 million are obese.
In 2003, it is reported that 19.6% of the Filipino population are overweight and 4.9% are obese.
The numbers continue to increase during these days. Consumers are becoming more health
conscious looking for more healthier and organic products.

Relevance
Most of the products of Mang Inasal are meat, which is high in saturated and transfat that
can lead to obesity and heart disease. For customers who are looking for a healthier food, eating
in Mang Inasal may not be a good option for them and this may lead to a decrease in the market
share of Mang Inasal, as people will shift their interest to those restaurants who offer organic and
healthier foods.

Health Related Risks of Poultry

One common disease that we can get from poultry, especially chickens, is bird flu, which is
a disease caused by Type A influenza virus that mostly infect birds. This has been a serious
problem faced by poultry-related industries in the early years 2003-2009.

Relevance
Since the major product of Mang Inasal is its Chicken Inasal, health related risks of poultry
could decrease the sales of Mang Inasal, as people will avoid poultry products because of the
fear of having a sickness that they can get from it.

e. Technology
1. Mang Inasal to-go
Mang Inasal has launched a centralized delivery system. By simply dialing 7331111, customers can now order their favorite Mang Inasal meals and it will be delivered right on
their doorsteps anywhere within Metro Manila. Pilipinas Teleserve, Inc., one of the Philippines
leading service providers for fastfood chain deliveries, services the centralized delivery system.
Thirty-two strategically located stores serve as delivery hubs for motorcycle-riding deliverymen.
This will make the delivery of Mang Inasal orders faster and reliable as part of the companys
service values that include excellent customer service and market leadership.
2. Internet
Online Advertising: Benefits
1. Cost - Online advertising, and in particular social media, provides a low-cost means for
advertisers to engage with large established communities. Advertising online offers better returns
than in other media.
2. Measurability - Online advertisers can collect data on their ads' effectiveness. This
helps online advertisers improve their ad campaigns over time.
3. Formatting - Advertisers have a wide variety of ways of presenting their promotional
messages, including the ability to convey images, video, audio, and links. Unlike many offline
ads, online ads also can be interactive.

4. Targeting - Online advertising offers the ability to reach customizable and narrow
market segments for targeted advertising.
5. Coverage - Online advertising can reach nearly every global market, and online
advertising influences offline sales.
6. Speed - Once ad design is complete, online ads can be deployed immediately.
Furthermore, online advertisers can modify or replace ad copy more rapidly than their offline
counterparts replace.

f. Economy
1. Oil Price Hikes
How do high oil prices affect the economy on a micro level?
When oil prices increase, a larger share of households budgets is likely to be spent on it,
which leaves less to spend on other goods and services. The same goes for businesses whose
goods must be shipped from place to place or that use fuel as a major input (such as the airline
industry). Higher oil prices tend to make production more expensive for businesses, just as they
make it more expensive for households to do the things they normally do.
What effects do oil prices have on the macro economy?
Oil price increases are generally thought to increase inflation and reduce economic
growth. In terms of inflation, oil prices directly affect the prices of goods made with petroleum

products. Oil prices indirectly affect costs such as transportation, manufacturing, and heating.
The increase in these costs can in turn affect the prices of a variety of goods and services, as
producers may pass production costs on to consumers.
Oil price increases can also stifle the growth of the economy through their effect on the
supply and demand for goods other than oil. Increases in oil prices can depress the supply of
other goods because they increase the costs of producing them. In economics terminology, high
oil prices can shift up the supply curve for the goods and services for which oil is an input.
High oil prices also can reduce demand for other goods because they reduce wealth, as
well as induce uncertainty about the future (Sill 2007).

g. Environment
1. Agricultural Nation
Philippines remain to be an agricultural nation where it can serve as a source for the raw
materials that Mang Inasal uses for its business. Instead of having every ingredients, flavorings,
and other materials imported, Mang Inasal can use the it Philippines abundant natural resources.
2. Urban Development
With the recent growth in the real estate industry in the country, more and more provinces
and rural areas in the country are starting to be developed and urbanized. More and more
condominiums and villages are being constructed in various provinces of the country. This has
started a sort of migration of Filipinos families to the provinces or countryside. This would mean
more new areas for Mang Inasal to conquer and more market to serve.

h. Political Legal
1. Political Instability
The Philippines has and may continue to experience political instability, including strikes,
demonstrations, protests, marches, coups dtat, guerrilla activity or other types of civil disorder.
These instabilities and any adverse changes in the political environment in the Philippines could
increase our operational costs, increase our exposure to legal and business risks and make it more
difficult for us to operate our business in the Philippines.

2. Sanitary Issues Standards


Mang Inasal is in the food industry that is part of everyones basic needs. They cannot
allow even minor issues to happen because this can affect the loyalty and sales of Mang Inasal as
a whole. Quality products and services should be maintained to avoid sanitary standards issues.

2) SWOT Analysis
After the internal and external analysis, we will now summarize the strengths and
weaknesses of the internal management of Mang Inasal-Silang branch. We will also present the
possible opportunities that may be beneficial to Mang Inasal, as well as the threats, which may
hinder the continuous success of Mang Inasal.

a) Strengths

Competitors The management of Mang Inasal believes that do not have direct competitors in
the vicinity. They said that the Hap Chan, a Chinese-style restaurant situated near Mang Inasal, is
just their indirect competitor. Moreover, Jollibee is far away from Mang Inasal. MI has no direct

competitors in the municipality of Silang.


Location/Accessibility Another strength the management of of Mang Inasal has given is their
location. Mang Inasals location is strategically planned. Making Mang Inasal more accessible for
travellers since Mang Inasal is in the front part of Premier Plaza, which is along the national hi-

way.
Ambiance Like most of the branches of Mang Inasal, Mang Inasal-Silang branch showcases

the Filipino-style ambiance which entices customers to eat inside while feeling at home.
Halal Certified Being Halal certified is a major advantage of Mang Inasal among other fast
food chains. It is because our Muslim brothers can buy some of the products being served by

Mang Inasal. This in turn makes the target market of Mang Inasal to expand more.
Large Target Market Mang Inasal presents itself as a product to people from a young age of
three till as old as seventy. This way, it widens its target market giving the company an edge over
its competitors. The store accommodates a large group of people making it more enticing to visit

and patronize.
Endorsements Mang Inasal makes itself known through all the promotional tools possible,
from TV commercials, radio jingles, posters, print ads and billboards. Mang Inasal makes sure
that it makes itself present to the mass. Mang Inasal makes use of actors and actresses who

resemble the story of the beginning and success of Mang Inasal like Mark Bautista.
Brand Image After its partnership with Jollibee last November 17, 2010, Mang Inasals brand

image surely took on a notch. This in turn, added more profit to the company.
Locally-adapted Food Menu Which other fast food chain offers Enseladang Talong and
Pinakbet? None, right? Maybe except for those buffet-type of food business like Cabalen. Mang
Inasal offers Filipino dishes that are best partnered with their chicken, pork and fish products.

Local Market as Supplier One of the visions of Mang Inasal is to help the local community
where they in turn. Thus, in turn, they get their supply of banana leaves and bamboo sticks from

the local market of Silang. This helps the local community to grow as well.
Environment-Friendliness Mang Inasal uses a ducting system, which recycles the smoke
coming from the grills. Mang Inasal uses biodegradable materials and zero-waste management.

b) Weaknessess

Global Expansion Lack of in depth planning and research in the global expansion. Mang
Inasal failed to replicate its success in the foreign markets. Probably because it offers Pinoy-style

food into foreign market.


Slow Service One of the things that is considered a weakness of Mang Inasal is their slow
service. Yes, they provide fast service with their regular menu but it takes them a lot of time to
serve the not so usual dishes like Grilled Bangus, Leche Flan and other products other than their

Chicken and Pork products.


Limited Space One of the major problems that Mang Inasal is facing roots from having limited
space. Yes, Mang Inasal has high brand awareness and high repeat purchase (as weve gathered
from our survey), but they dont have enough space to accommodate their growing number of
customers. Most customers are not willing to wait and so they switch to other establishments if

they see that Mang Inasal is full-packed.


Low Security Another weakness of Mang Inasal-Silang branch is lack of security. Yes, the mall
itself has its own security guards but Mang Inasal, itself has none. This may give bad impressions
on the customers and some may think that they will not be secured enough when they are dining

in Mang Inasal.
Filipino Culture Mang Inasal caters not only the Filipino people, but Mang Inasal caters
foreigners as well. The target market of Mang Inasal is Filipinos. They must also conform to

adapt to their other customers especially those who are not Filipinos.
Lack of Employee Motivation We learned from the manager of Mang Inasal that the only
benefit that employees of Mang Inasal get is free meal. We also learned that they dont have
regulars. Meaning, the crew are just contractual. We believed that this is a weakness of Mang
Inasal since for a company to get better results; its internal staff must also be satisfied.

Commissary Struggles Mang Inasal gets its supplies from a single unit JFC Corp. Yes,
having a strong commissary is strength but we must also take into consideration those times when
the company experiences commissary struggles like that of the recent issue faced by JFC Corp. It

somehow dampen the image of Jollibee and its sister companies.


Low Advertisement Mang Inasal-Silang branch has lesser advertisements. They do not have

road sign and other types of advertising materials.


Unhealthy Foods Most of the products that Mang Inasal offers are high in fats and cholesterol.

c) Opportunities
Technological advances Since the generation today offers great innovations and almost
every business adapts them, it is a good opportunity for Mang Inasal to upgrade the
technology they are using. One of which, is to opt to use electric grills in grilling the
products instead of the traditional live charcoals, and in cooking the other dishes in the

menu.
Increasing number of offices The municipality of Silang is now rapidly being
urbanized. With the opening of offices chances for an increase in the market of Mang

Inasal in Silang is very possible.


Changing customer tastes It can be advantageous for the company to respond
positively to these changes by adding new products and dishes like seafood and pasta to
the existing menu so that, the customers will have more choices and will not eventually

be dissatisfied.
Night-shift employees It can be an opportunity to open 24/7 in Silang to cater this

market segment.
Fiestas and prominent events in Silang The Silang branch of Mang Inasal can have
public relations with the residents by engaging in the fiestas and in customer support

programs for good publicity.


Rapid increase in population The Filipinos have reached 100 million in number, and
to Mang Inasals advantage, its target market of 3-75 years old is continuously growing
having a growth rate of 5.05% per year (2010).

Holiday season The fast-approaching holiday season is a great opportunity for Mang
Inasal in Silang to attract more customers since many families and groups go out during

this period to hang out and eat.


d) Threats
Direct and indirect competitors The competitors of Mang Inasal, even the indirect
Hap Chan, still pose as a threat to the company. Since this competitor (Hap Chan) offers a
different cuisine, it is possible that customers will try their menu and shift to theirs.
e) Trend towards healthy eating According to studies, 54% of the Filipinos today are
becoming more health-conscious. This then affects the companies in the fast food
industry including Mang Inasal, since customers are now looking for healthier foods and

regard fast foods as "unhealthy".


Supply shortage Having short of supply is very inconvenient to companies, even to

Mang Inasal who have a commissary system with JFC.


Weather - The weather affects greatly the behavior of the customers. When there are

heavy rains, most people would prefer to stay indoors and not go out to eat.
Poultry-related diseases Since chicken is the main product of Mang Inasal's menu, any

news of these diseases will negatively affect its sales.


Medical/health studies In medical journals, it was said that the over-grilling of foods
is not healthy because the burned part can be cancerous. This may affect then the

decisions of the customers.


Currency fluctuation This could affect the purchasing power of the customers and

may greatly affect the company's sales or profitability.


Oil price hike The Philippines imports fuel from other countries, and when oil prices
go high almost everyone, the consumers and companies, is affected. Costs may increase
and may eventually push the company to increase the products' prices, which also may
not be appealing to the customers.

3) Key Success Factors in the Industry


In a company such as Mang Inasal, innovation is important because competition in the fast
food industry is very tight. Product innovation is necessary as it adds value to the company since
products are being offered to the market for attention, acquisition or consumption that may
satisfy a need or want. In this case, product innovation is done to get the attention of customers
and most especially the non-customers of the company so that they will have a chance to steal
some market share of their competitors. As the saying goes, the test of the pudding is in the
eating. It is imperative for Mang Inasal, being in the fast food industry, to offer its customers
with good food. They must then make sure that the taste, which the customers have grown
accustomed, should be maintained and standardized, to keep the customers hooked and coming
back for more.
Freshness and quality of ingredients should also be maintained as part of maintaining high
standards with their products. Pricing also is an important to consider given that the target market
of Mang Inasal is considered price sensitive. Any sudden and drastic change in price might push
the customers to find other food providers. Moreover, in the industry that Mang Inasal is in, there
many others than can provide Mang Inasal customers with other alternatives. It must then be
ensured that products of Mang Inasal are priced in a way that highlights value at the same time,
still affordable to its customers.

MARKETING OBJECTIVES
To have our new product offering be known in the whole municipality of Silang as a healthy and
affordable meal that is best suited for health-conscious and price-sensitive individuals by the end of
2015.
We aim for at least 80% of awareness level of the whole population of the municipality of Silang,
Cavite by the end of year 2015. We are aiming to cater the price-sensitive and health-conscious
consumers in Silang, Cavite. We want to have a new branding, which embeds healthy foods in the minds
of the consumers by using fresh, quality, and very healthy ingredients.
To increase annual sales by 20% more against the previous year with the introduction of the new
product line by the 4th quarter of 2014 which will cater the needs of our health- conscious customers who
are looking for a healthy lifestyle.
Most Filipinos nowadays are health-conscious. Many studies which were conducted regarding
fast food products provided everyone information about the health risks and unhealthy concerns of eating
them. For us to achieve sales goals and increase transactions, we will provide a new product that will
influence the costumers behavior and perception about healthy living. For the short run goal, new
product strategies will be provided to promote, draw, and capture health conscious customers to our new
healthy product line. For the long run goal, strategies to influence and encourage potential customers into
accepting our products must be provided to influence them to increase the purchase size of the product
and its purchase frequency.
To increase market shares in Silang by 15% more by the end of year 2015 by continuously providing
customer satisfaction to retain customers and promote our products in the whole vicinity of Silang
through public relations and effective sales promotions and advertisements.

For us to ensure that the same quality will be delivered at all times to our valued customers, we
maintain the standard Mang Inasal has been known for. We strictly comply with the high standards which
can be summarized into F.S.C. Food served must meet the standards given by the company. Service
should be fast and courteous. Cleanliness of the place as well as the employees must be observed.
Product promotions will be done through the distribution of flyers and booth selling. Public relations
within the vicinity of Silang such as schools will also be conducted to increase the number of students for
the continuous patronage in our branch.

MARKETING STRATEGY
i.

Target Market
Because there is now this trend of consumers switching in to more-healthy products, the

management of Mang Inasal wishes to grab this opportunity. The labor force of Silang comprises
the 64.38% or 132,994 out of 206,577 persons in the municipality. The management wishes to
appeal more to the students, health-conscious, and price-sensitive consumers of Mang Inasal who
lives in Silang.
a) Need Segmentation
Tuna and Malunggay Pasta will be targeting the unsatisfied needs of healthconscious consumers who are avoiding meals, which are high in cholesterol.
b) Socio-Demographics Segmentation
The new product offering of Mang Inasal will be catering the labor force of the
municipality of Silang. More specifically, those aged 15-44 will be the main target market
of our product. This age group includes students from high school and tertiary levels,
office employees, factory workers and other professionals.
c) Behavioral Segmentation
Adventurous type of consumers, or those who usually try the new product
offerings, is the ones, which our product, Tuna and Malunggay Pasta will be targeting.

This behavior is more dominant in the young adult and middle age population, which
comprises the majority of the population of Silang, Cavite.
d) Price Segmentation
Price-sensitive individuals will be the major target of the new product offering.
ii.
Marketing Mix
a) Product

Our product, the Tuna and Malunggay Pasta, has the following features, advantages and
benefits.
Feature: The product incorporates the use of Malunggay Pasta and Tuna as the main
ingredients for the main dish.
Advantages: Malunggay is rich in vitamins and minerals while tuna are rich in protein
Omega 3.
Benefits: Malunggay can, scientifically proven, help reduce the rate of having cancer.
Tuna, on the other hand, are good for the heart and helps in muscle build up.

Product Brief
o Overall Objective: To develop a low-priced meal that is suited for healthconscious individuals.
o Primary Target Market: Health-conscious individuals and students of Silang.
o Product Use: Mang Inasals Tuna and Malunggay Pasta will be used as a new
meal offer for adventurous, price-conscious and health-conscious consumers.
o Performance Objectives: We expect the following characteristics for the product.
Gatekeeper Criteria

1. Color should be appetizing.


2. General appearance should not be oily and the Malunggay should not
be obvious.

Key Motivating Criteria


1. The taste of the Tuna should be prominent and the taste of the
Malunggay in the pasta should be light.
2. Saltiness shall be minimal.
Standard Criteria
1. Net weight of pasta should be 100 grams to fall within the competitive
weight limit.

o Brand Personality: The target market of this product comprises of those who
go for the value of money in terms of affordability and health-relatedness.
They are careful in spending for unnecessary things. However, once they try a
product that gives them better value for their budget, they will stick with it.
We want our target customers to know our product as a very affordable and
healthy value meal. The health benefits of Malunggay and Tuna will be the
key factors of the product in terms advertisements, packaging and pricing.
o Financials: We aim to target aggressively 30,000 servings of the product for
our first six months. We intend to price this at an introductory price of
PhP49.00 per serving similar to our Sulit Meals. Given the promotional
expenses that will be incurred during the introductory stage of our product, we
set a 60% additional margin and this will increase after the duration of the
sales promo to cover up for the introductory expenses (e.g., advertising
expense and sales promotions expense) and other fixed costs. For the duration
of the promo, the total manufacturing cost should not exceed PhP20.00 per
serving.
o Timetable: The product shall be ready for launch in two months (December).
The taste test and evaluation will be done this coming October to randomly
selected customers, students and employees.

b) Place
The place or distribution of the new product of Mang Inasal will be just the same as
that of the original plan. There is nothing to change with the location of the branch.
Moreover, the Tuna and Malunggay Pasta will only be available in the Mang InasalSilang branch.
c) Promotion Mix
Advertisements The major proposals for the advertisement for the new product
are print ads such as tarpaulins, flyers, and road signs, as well as television and radio
advertisements. The picture below will be the proposed layout for the print ads.
Sales PromSSS

Sales Promotion To entice our target market to purchase the new product
offering immediately, different sales promotion strategies are to be done. First of these is
the three-month offer of Up-sized Pineapple Juice or Iced Tea to the customers who will
buy the product. This strategy supports the move of Mang Inasal to cater the healthconscious consumers since they will be given Pineapple Juice or Iced Tea for their drinks
instead of soft drinks. The said sales promotion strategy will also try to take advantage of
the Christmas and New Year season since the launch of the product is timed with the
holiday season.
Another sales promotion strategy that will be conducted by the management is the
distribution of coupons that will give discounts to the holders of the coupons.
Public Relations Mang Inasal will be participating in the upcoming major
festivities in the municipality of Silang, to enhance the public relationship of Mang Inasal
to the citizens of Silang.
Selling More efforts will be exerted for the selling of the product and a lot of
selling strategies will be done.
d) Price
The intensive research on the behavior of the target market done by the proponents
showed that the consumers of Silang are price-sensitive, and therefore, the management
should set a more affordable price for the new product offering. Taking into consideration the
ingredients to be used in the product, the proposed introductory price of our product is
PhP49.00 and will be lined with the Solb Sarap Meals offered by Mang Inasal.

CONTINGENCY PLAN
Awareness Level The expected awareness level that will be achieved by the new
product offering is 60% of the target market or 79,800 individuals after the six-month period of
doing advertisement efforts (e.g. flyers, print ads, and radio and television advertisements). If
ever the targeted awareness level will not be achieved despite the advertisement and promotional
efforts, the management will increase the number of advertising activities. The management will
focus more on achieving the targeted awareness level since most of the projections done by the
marketing team depends mainly on the success of reaching the target market and letting them
know about the new product offering.
Trial Purchase Level - As projected by our marketing team, the trial purchase level will
be 45% of the individuals who are aware of the new product offering or 35,910 individuals. This
estimate is based on the survey conducted by the marketing team and the result showed that at
least 45% would be adventurous enough to try the new product. If the targeted trial purchase
level will not be achieved, the management will be conducting free taste activities in the Silang
branch. The management are expecting this move to help reduce the risk factors that the target
market feels since the risk factors of newly offered products are very high.
Repeat Purchase Level Of the expected 35,910 individuals who will try our product,
25% or 8,978 persons will purchase the product again. If ever the expected repeat purchase level
will not be met, the management will try to assess the factors that brought about the shortcoming.
After evaluating the reasons, the management will implement corrective actions that may help
improve the repeat purchase level of the new product offering. Sales promotion activities like
free taste will most likely be conducted if expected repeat purchase level is not attained.

IMPLEMENTATION, EVALUATION AND CONTROL


1) Financial Projections
The financial objective is to be financially stable within the first year of selling
the product. The projected profit margin is about 60% of the budgeted total sales for the
first year of launching our product.

BUDGETED INCOME STATEMENT


For the period ended November 2015
Sales (107,730 x P49)

Cost of Goods sold (107,730 x P20)

5,278,770
(2,154,600)

Gross Profit

3,124,170

PLANNED PERFORMANCE STANDARD FOR TUNA AND MALUNGGAY PASTA


Population (Target Market)
Awareness Level
Trial Purchase Level
Repeat Purchase Level
Purchase Size
Purchase Frequency
Sales Volume

:
:
:
:
:
:
:

133,000
60%
45%
25%
1 serving
Monthly
107,730

For the projected budget purposes, we get the total number of the age group 15-64
or the labor force group in the municipality of Silang, which will be our target market.
This age group sums up to 132,994 or 62% of the total population of Silang. For easier

computation, we rounded up the population to 133,000. This age group includes the
students, employees and other working individuals in the municipality of Silang. They
are also the ones who are more price-sensitive and are more health-conscious.
The expected awareness level that we expect after all the promotional efforts (e.g.
flyers, prints ads, television and radio ads) is 60% of the target market or 79,800
individuals.
Of those 79,800 individuals, 45% or 35,910 are expected to try the new product
offering of Mang Inasal. Of those who are expected to learn of our new product offering
and tried the product, an estimate of 25% or 8977.5 are expected to purchase again the
product.
Since the expected purchase frequency is one serving per month, we just simply
multiplied 8977.5 by 12 to get the projected sales volume, which is equal to 107,730
servings for the whole year.
The budgeted income stated is shown in the table above using the figures
computed in the above paragraphs.

2) Implementation Timetable
ACTIVITIES

2014

Nov
Introduction of
the New Product
Flyers
Distribution and
Print Ads
Radio
Advertisements
TV
Advertisements
Upsized Drink
Promo
Coupon
Distribution
Coupon
Redemption
Product Selling

Dec

2015

Jan

Feb

Mar

Apr May Jun

Jul

Aug

Sep

Oct

References:
http://www.euromonitor.com/fast-food-in-the-philippines/report
http://manginasal.com/
http://healthygrillusa.wordpress.com/2012/12/27/menus-whats-hot-in-2013/
http://www.frbsf.org/education/publications/doctor-econ/2007/november/oil-prices-impact-economy
http://franchisephilippines.org/8-best-philippine-franchises/
http://www.allaboutdiabetes.net/promoting-filipino-healthy-lifestyle/
http://www.birdlife.org/news/news/2007/03/avian_flu_report.html
www.chic-boy.com
www.bacolodchickeninasal.com

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