Presented By:

De Los Santos, Bon Gerwill

Samas, Jerome

Julie’s success is attributed to the culture set down by its founder and namesake, the original Tita Julie, Mrs. Julia Gandionco.  A canteen concessionaire since 1970, Mrs. Gandionco, or Ma’am Julie as she prefers to be called, started the first Julie’s Bakeshop in Wireless, Mandaue on January 6, 1981.  The bakeshop was intended to answer Ma’am Julie’s canteen needs of bread products.

Since 1981, Julie’s Bakeshop has served customers all over the nation its distinctive brand of high quality, freshly baked breads.  With more than 500 branches and outlets nationwide, Julie’s is a shining example of success through hard work and commitment.

COMPANY PROFILE

SWOT ANALYSIS Strengths-S

Advertising

Job Specialization

Pricing

Brand Name

Weaknesses-W

Employee Training

Production Speed

Limited Branches in Operation

Store Size Opportunities-O

Advertising

Health Consciousness

“Rice Subsidy”

Threats-T

Newbie in the Market

Small Market Share

Limited Branches in Operation

Competition

Food Preferences (Trend)

External Factor EvaluationOpportunities Weight Rating Weighted Score

1.)Acquiring latest technology in baking

0.10 3 0.3

2.)Increasing number of potential customers

0.15 3 0.45

3.)Advertising and Social Networking

0.10 2 0.2

4.)Market Penetration 0.15 3 0.45

Threats

1.)Brand Recognition 0.10 4 0.4

2.)Increasing Number of Baking Company

0.10 3 0.3

3.)Strong Competitors in the Industry

0.15 3 0.45

4.)High cost of baking ingredients(sugar,egg,flour)

0.15 4 0.6

Total: 1.00 3.15

Internal Factor Evaluation Key Internal Factors Weight Rating Wtd Score 1.)Strong Management team 0.05 3 0.15 2.)Good franchising assistance

0.10 4 0.4

3.)Good relationship with the Franchisee

0.05 3 0.15

4.)Good Relationship with the suppliers

0.10 3 0.3

5.)Corporate Culture 0.10 3 0.3

Key Internal factors Weight Rating Wtd Score 1.)No overseas market 0.20 4 0.8 2.)Limited access to international market

0.15 4 0.6

3.)Operating Losses 0.05 2 0.1 4.)Small number of management team

0.10 2 0.2

5.)Small number of suppliers 0.10 3 0.3 Total: 1 3.3

Competitive Profile MatrixCSF FIRM RATING (1-4) REASONS FOR RATING

#1 Financial Position

What is the current financial capability of

the company.

4 Because of having around 250 stores inside and outside the country Goldilocks made its way on top of the market in the Baking and fastfood industry. the company enjoys a substantial lead over competitors in all aspects of performance. National consumer surveys have consistently identified Goldilocks as the landslide winner in customer satisfaction indices such as Awareness Conversion (the ability to translate brand awareness to actual trial) and Share of Heart (the emotional approach to measuring preference).

#2 Technology

What are the latest on technology and how it affects the company’s sales and production.

3 Using the latest technology in baking, goldilocks created a good products and services. They also have a very accessible internet and phone services. Their loyal customers can access it fast and very reliable.

#3 Customer Service

How the company serve their customers and how they build loyalty.

4 Goldilocks as one of the pioneering baking company in the country already established a good relationship in every Filipino, they always adopts the Filipino hospitality on their services. Most Filipinos consider Goldilocks not only a brand, but also a Filipino Institution. In fact its popular tagline, “How thoughtful, how Goldilocks” has evolved over the years into “How thoughtful, how Pinoy (colloquial for ‘Filipino’)”, and later to “Ang sarap magmahal ng Pinoy!”, embracing a culture and tradition that goes beyond the name.

#4 Innovation

New and improve product services and

features

4 One of the first 100 companies in the country to get GMP and SSOP (Good Manufacturing Practices and Standard Sanitation Operating Procedures) certifications.

They innovate their products by acquiring the latest in baking industry, it resulted into a good sales over the years.

CPM : ( Red Ribbon ) CSF FIRM RATING

(1-4) REASONS FOR RATING

#1 Financial Position

What is the current financial capability of the

company.

4 With its acquisition in October 2005 by Jollibee Foods Corporation, Red Ribbon entered a new phase in its company history. The company will soon become the biggest and fastest-growing bakeshop in the Philippines. Its mission is to bring the joy of eating to everyone through its great-tasting food and superior quality.

#2 Technology

What are the latest on

technology and how it affects the company’s sales and production.

3 Red Ribbon uses premium ingredients, such as real butter, high quality cake flour, and its unique Red Ribbon cream

#3 Customer Service

How the company serve their customers and how they build loyalty.

4 For Red Ribbon Bakeshop, the ingredients to success are no secret. Quality. Service. Value. Customer. Red Ribbon has even taken itself to a higher level of customer service. Improvements are geared towards a more delightful dine-in experience with strict FSC (Food, Service, Cleanliness & Condition) compliance, better take-out experience to ensure faster servicing time, and enhanced delivery service with a broader coverage.

#4 Innovation

New and improve product services

and features

4 Red Ribbon dominates the baking industry through wide variety of choices in cakes and other pastry products, through innovating their products they created a good results in fair competition with its key competitors.

Strategy Formulation

SWOT MATRIXSO Strategies

-Being specific and having a concentration with what the products they wanted to offer to the public to satisfy their long for a good and healthy sandwich as a substitute for rice

WO Strategies -Making the store look more customer friendly to attract more customers, and giving enough benefits to the employees to satisfy their needs for a better production in providing quality and healthy products

ST Strategies - Empowering the Brand name through massive advertisements in making a good and health conscious products in just a cheap price, affordable by the mass

WT Strategies -Attract more investors to invest to the company to make the financial power more stable and to be able to expand the business and be able to offer much more of the products available for sale.

SPACE MATRIXInternal Strategic Position External Strategic Position

Financial Strength (FS) Return on investment=3

Leverage=2

Liquidity=3

Working capital=4

Cash flow=3

Environmental Stability (ES) Technological changes=-3 Rate of inflation=-4

Demand variability=-3

Price range of competing products=-4

Competitive pressure=-4

Price elasticity of demand=-3

Ease of exit from market =-4

Risk involved in business=-2

Barriers to entry=-3

Internal Strategic Position External Strategic Position

Competitive Advantage (CA) Market share=-4

Product quality=-3 Product life cycle=-4 Customer loyalty=-4

Competition’s capacity utilization=-5 Technological know-how=-4

Control over suppliers & distributors=-5

Industry Strength (IS) Growth potential=2 Profit potential=-2

Financial stability=1 Technological know-how=3

Resource utilization=2 Ease of entry into market=2

Productivity, capacity utilization=3

BCG MATRIX

Having an Industry Growth Rate of 8.5% and a Market Share of 27%, Julies Bakeshop falls on Question Marks, which means

Low relative market share – compete in high-growth industryCash needs are highCase generation is lowDecision to strengthen (intensive strategies) or divest

INTERNAL –EXTERNAL MATRIX

Based on the on the IE Matrix Julie’s Bakeshop falls on cell 1 grow and build which means that the following strategies are recommended:

• Market Penetration• Market Development• Product Development• Backward Integration• Forward Integration

GRAND MATRIX

Looking at the GSM, Julies Bakeshop is located in the quadrant I. They are in an excellent strategic position.

The perfect strategies are market penetration, market development, and product development. Being in the quadrant I, they can afford to take advantage of external opportunities in several areas. They can take risks aggressively when necessary.

QSPM:

1.)Improve Franchising

Program

2.)Build more stores in

Visayas and Mindanao

Key Factors Weight AS TAS AS TAS Opportunities 1.)Acquiring latest technology in baking 0.10 4 0.4 4 .4 2.)Increasing number of potential customers

0.15 3 0.45 3 0.45

3.)Advertising and Social Networking 0.10 3 .3 4 .4 4.)Market Penetration 0.15 3 .45 3 .45 Threats 1.)Brand Recognition 0.10 1 0.1 4 .4 2.)Increasing Number of Baking Company

0.10

3.)Strong Competitors in the Industry 0.15 3 .45 3 .45 4.)High cost of baking ingredients(sugar,egg,flour)

0.15 4 0.6 - -

Total: 1.00 Strengths 1.)Strong Management team 0.05 4 0.2 2 0.10 2.)Good franchising assistance 0.10 - - 4 .4 3.)Good relationship with the Franchisee

0.05 4 0.2 - -

4.)Good Relationship with the suppliers 0.10 - - - - 5.)Corporate Culture 0.10 - - 3 .3 Weaknesses 1.)No overseas market 0.20 - - - - 2.)Limited access to international market

0.15 - - - -

3.)Operating Losses 0.05 4 0.2 4 0.2 4.)Small number of management team 0.10 4 5.)Small number of suppliers 0.10 3 0.3 3 0.3

Total: 1.00 3.65 3.85

Market DevelopmentJulie’s Bakeshop as a baking company should expand its business; its key competitors are located almost everywhere except in the rural parts of the country. Julie’s Bakeshop should also build stores inside the mall to gain its competitive advantage among its competitors like Red Ribbon and goldilocks. Managers take actions like targeting promotions, opening sales offices and creating alliances to operationalize a market development strategy. They should also need to improve its franchising programs and assistance so they can expand stores in Visayas and Mindanao.

Product Development Julie’s Bakeshop as one of the oldest in Philippine Baking market should innovate its pastry

products to cope up with the consumer rapid change on taste and to the competition among its key competitors, through new-product development m the company sown research -and-development department By new products we mean original products product improvements product modifications and new brands that the firm develops through its own research-and-development efforts.

 

Strategy Recommendation

Market PenetrationIn light of Julie’s Bakeshop’s market position it should increase its market share through Increasing its distribution and promotion of products and services, more expenditure in marketing and advertising activities. This strategy adopted by the firms to raise their sales revenue without making changes in the products or services. The other dimension of market penetration is the existing market which means firm already offering products or services to the customer but can forecast that the existing sales figures can be improved by working on marketing penetration strategy.