Uncle John's 654m1w

SITUATIONAL ANALYSIS

MISSION

By opening more stores, Ministop would like to contribute to the enhancement of communities by providing customers with excellent service in a clean, safe and friendly environment. At the same time to provide business opportunities to local entrepreneurs who can be Ministop’s reliable business partners.

MISSION EVALUATION Mission Parameter

Yes/ No

Explanation/Comments

1.

Customer

No

Only a part of their total target market was specified, which was local entrepreneurs who would be interested in franchising. It did not mention who they would provide “excellent service in a clean, safe, and friendly environment.”

2.

Products and Services

No

It did not mention the types of products or services the company offers.

3.

Geographical Market

No

It did not mention where the firm competes.

4.

Technology

No

5. Concern for survival, growth and profitability

Yes

It stated that they are open to local businessmen to become their partners.

6.

Philosophy

Yes

It implied that they valued reliability.

7.

Self-concept

No

It did not mention any competitive advantage over other companies

8.

Public Image

Yes

Providing business opportunities to local entrepreneurs makes the company a valuable member of the community

9.

Concern for Employees

Yes

Instead of calling them employees, they called them partners, which assumes that they are of equal footing with one another.

VISION

To be the leader in the convenience store industry preferred by customers in of assortment, price, quality of products and value added services.

VISION EVALUATION Vision Parameter

Yes/No

Explanation/Comments

1. Does it clearly answer: What do we want to become?

Yes

The idea of being the leader in the convenience store industry is clear as it also mentioned the parameters to be measured.

2. Is it concise enough yet inspirational?

Yes

Easily understood because it is direct to the point and ambitious in a good way.

3.

Yes

Desiring to be the leader in the convenience store industry is very impressive and would impart the feeling of having a larger sense of purpose for the of the company

No

Not time-bound. Setting a 10-year mark for the realization of the vision is a safe choice and is good enough.

Is it aspirational?

4. Does it give a clear distinction as to when it should be attained?

MARKET SEGMENTATION • 2 main target markets • Young professionals • Students

YOUNG PROFESSIONALS (INCLUDING AND ESPECIALLY THOSE WHO WORK IN BPOS) • Description: Situated in urban areas densely-populated with the working class (whether they belong to day or night shifts) • Percent of sales: Unknown but possibly small majority • What they want: They want fast, convenient meals that are affordable and is able to capture and satisfy the Filipino palate. • How they use product: Young professionals, whose meal breaks range from a few minutes to an hour, would either finish their fresh meals within the store or easily bring them back to the office for eating or reheating later. • requirements • How to reach them: flyering, discount coupons, in-store promotions, value Meals, gift with purchase tieups, co-branding tie ups with brands like Coke, Pepsi, C2, Minute Maid, to be able to ride on their trimedia advertising campaigns. • Price sensitivity: Filipinos in general are quite price sensitive and may forego buying a commodity if the price increases significantly relative to its competitors. In the case of Ministop, they see their customers as price sensitive and strive to maintain the price of their fried chicken near their competitors’.

STUDENTS • Description: Public and private school students, who use their own allowance to pay for food and other items in the store. • Percent of sales: Unknown but possibly a minority • What they want: They want a quick pre- or post-school snack or even buy their breakfast, lunch, and or dinner from the store. • How they use product: Students would often by to just grab a bite on their way to school or on their way home. They can also use the area as a study place in the early mornings before the hustle and bustle. • requirements • How to reach them: flyering, discount coupons, in-store promotions, value Meals, gift with purchase tie-ups, co-branding tie ups with brands like Coke, Pepsi, C2, Minute Maid, to be able to ride on their tri-media advertising campaigns. • Price sensitivity: As students have varying allowances, those who have a bit more are less price-sensitive to changes and those who have less will think twice before buying food that had its price significantly changed.

STRENGTHS • Superior taste, freshness and quality (based on surveys and food blogs) • average of 44,000 pcs of Uncle John's Fried Chicken sold everyday • 8 out 10 customers prefer Uncle John’s fried chicken to any other competitor's chicken (study recently conducted by Ministop) • Ministop topping the survey garnering 67% of the total first-place votes, with a mean ranking of 1.39 (compared to 2.44 for Family Mart and 2.17 for 7-Eleven) (Taste test survey on ASMPH students last Aug. 25, 2016) • “..the meat is tender, moist, and juicy..”; “..the meat almost resembles Chickenjoy”; “..the chicken finishes off strong with its skin. It’s crisp to the bite and carries the same taste as its meat, so you know you’re eating good chicken”; “..undoubtedly a solid pick” (Pepper.ph article by Miguel Ortega comparing the fried chicken of Ministop to that of 7-Eleven and Family Mart) • “..I’ve been bombarded with demands, constant insistent demands, to try Ministop’s fried chicken. When I finally did, it immediately made it to the top of my list, next to Pancake House’s Classic Pan Chicken and Jollibee’s Chickenjoy. Ministop’s version is as crispy and juicy as any other, and yet it has its own unique flavor to set it apart.” (Pepper.ph article by Addi dela Cruz)

STRENGTHS • Freshly-cooked and served hot • The biggest difference with Uncle John’s fried chicken compared to other convenience stores is the fact that Ministop has a built in kitchen, serving meals that are freshly cooked and served hot all the time. • “We just stay focused on our value proposition and differentiation in the market. We are the only convenience store chain in the market, for example, with an in-store kitchen so we serve our ready-to-eat food freshly cooked,” says Ministop.

STRENGTHS • Strong company culture and reputation • subsidiary of the Robinsons Retail Holdings, Inc., with sister brands that share strong reputations which include Robinsons Supermarket, Robinsons Selection, Robinsons Dept. Store, Handyman, True Value, Robinsons Builders, South Star Drug, The Generics Pharmacy (TGP), Toys ‘R Us, Daiso Japan, Robinsons Appliance, Topman, Topshop, Dorothy Perkins, River Island, Warehouse, Shiseido and Benefit Cosmetics, Costa Coffee, among others • also part of the JG Summit Conglomerate of the Gokongwei's - which includes among others: • URC with brands like Jack & Jill, Calbee, C2 and Blue, which also engages in the manufacturing of snacks, beverage and noodles; • companies like Cebu Pacific, Digitel, Robinsons Bank, Robinsons Land (building the malls, office and residential structures); and • Summit Media that publishes magazines like FHM, Forbes, Good Housekeeping, etc.

• “a culture that thrives on collaboration and innovation to meet constantly changing consumer needs. It is proactive and entrepreneurial in nature, delivering more than what is asked for, for its employees and above all, its customers. All its businesses are built on trust and honor making products to the highest standards.”

STRENGTHS • Various chicken variants and sauces • Since one of Ministop's unique selling proposition is its ready to eat products, it has developed chicken variants like the "Glazed ala Bon Chon" Uncle John's Fried Chicken. It has also introduced aside from its regular gravy other sauces that may be eaten with it.

STRENGTHS • Good quality assurance • Has always been a Ministop priority. • Has food safety standards that exceed standards of many Quick Service Restaurants operating in the country • Engages in Quarterly Food Safety Audits - including but not limited to its suppliers' commissaries and production and manufacturing plants • Conducts quarterly water analysis testing to guarantee that these are all within FDA food safety standards • Has a full blown Training Center and Training Stores to ensure that all its Store Crew are well equipped to handle the stores' operations

STRENGTHS • Strong sales numbers of Uncle John’s fried chicken • currently sells an average of 44,000 pcs of Uncle John's Fried Chicken everyday, or around 1 pc. of chicken every 2 seconds. • Ministop’s top-selling food item. • Ready to eat category in Ministop now contributes almost 33% of its total business, with Uncle John’s Fried Chicken contributing 15%

WEAKNESSES • Taste and quality of the gravy • “The chicken is so good in fact that it bares strikingly similar to Chickenjoy. But with the gravy, here’s where the similarities end. The Ministop gravy is a decent, light brown sauce that doesn’t really stand out”. (Pepper.ph article by Miguel Ortega)

WEAKNESSES • Slightly higher price than its competitors • A meal consisting of 1 piece fried chicken and a cup of rice costs P65 both at 7-Eleven and Family Mart. (Ministop, - P68) • The Filipino in general is highly sensitive to price changes. • For a company targeting Filipinos across all ages and all classes, the P3 difference might be a deciding factor, especially for those in the lower class.

WEAKNESSES • Ministop: Smaller market share than 7-Eleven (in of number of stores) • Modern day convenience store retail segment pioneered in the Philippines by 7Eleven (Philippine Seven Corp.) in 1984 and has held the number one position ever since. • 7-Eleven store numbers predicted to reach 2000 outlets by 2018; expansion over the next decade could see 10,000 • Such volume in number of outlets gives 7-Eleven a substantial market advantage and placing it in the strongest position to leverage its critical mass. • Ministop (Robinsons Retail Holdings, Inc.) - second major player in the country • Launching its first store in August 2000, Ministop has now ed through the 500 store mark and it is possible that number will double by 2018.

WEAKNESSES • Ministop: Less rapid expansion rate than Family Mart • Launching its first store in August 2000, Ministop store numbers raced to 100 within just four years • fast-paced when considering 7-Eleven required twelve years to reach the same number of outlets • has now ed through the 500 store mark and it is possible that number will double by 2018

• However, FamilyMart (t venture of four companies, including SSI Group Inc. and Ayala Land Inc.) raced onto the retail scene in 2013 and was operating 100+ stores within just two years • (compare this speed to 7-Eleven reaching 100 stores in twelve years and Ministop hitting the same milestone in four years) • Has indicated it aims to open 60 – 70 stores per year • Has indicated it requires up to 3000 stores to reach critical mass and sees this as possible within five years, which would be foolhardy to ignore considering the overall position and resources of SSI Group Incorporated, the number one retail group in the Philippines

CUSTOMER ANALYSIS

BEHAVIORAL ANALYSIS • Customer buying criteria • • • •

Price Quality Convenience Prestige

• Purchase process and patterns • Shift from grocery store shopping to convenience store shopping • Preference for prepared food

CUSTOMER DEMOGRAPHICS Young professionals • Age: 25-34 • Income level: P471,000/year • Level of education: College graduates • Marital status: single • Geography: BPO establishments

COMPETITIVE ANALYSIS

COMPETITIVE PROFILE MATRIX Ministop Critical Success Factors

Weight

Taste

Family Mart

7-Eleven

Rating

Weighte d Score

Rating

Weighte d Score

Rating

Weighte d Score

0.26

4

1.04

2

0.52

3

0.78

Value for money

0.21

4

0.84

3

0.63

4

0.84

Freshness

0.17

4

0.68

3

0.51

2

0.34

Size/weight

0.15

4

0.6

3

0.45

4

0.6

Availability

0.11

3

0.33

3

0.33

3

0.33

Accessibility

0.06

3

0.18

2

0.12

4

0.24

Price competitiveness

0.04

3

0.12

4

0.16

4

0.16

Total weighted score

1.00

 

3.79

 

2.72

 

3.29

EXTERNAL FACTOR EVALUATION

Key Factor

Weig ht

Ratin Weighted g Average

Opportunities Increasing activities in the BPO sector with its employees patronize convenience stores due to their round-the-clock availability.

0.21

4

0.84

0.16

4

0.64

Major meat products exhibited demand growth, with chicken meat having the highest demand

0.12

4

0.48

Expansion of food processing, modernization of the retail sector and increasing refrigeration ownership pushes demand growth of meat.

0.08

3

0.24

Threats

 

 

 

Expansion of 7/11 stores and the entry of new competitors such as Lawson.

0.15

4

0.60

Consumers demand healthier options, and may prefer convenience stores featuring calorie counted meals (Family mart, Sprout).

0.13

3

0.39

Forging of trade agreements in local and global forums has resulted in lowering of tariffs and removal of quantitative restrictions of agricultural products.

0.09

2

0.18

Cooked chicken meals in the market are in the trend of having a lot of variety and twists to the dish, which has caught the attention of Filipinos in recent years.

0.06

3

0.18

TOTAL

1.00

FamilyMart, a large convenience store company in the country still sees room for growth of convenience stores as a lot of Filipino customers in the market remain underserved

3.55

INTERNAL FACTOR EVALUATION

Key Factor

Weight

Rating

Weighted Average

Strengths Superior taste, freshness and quality (based on surveys and food blogs)

0.25

4

1.00

Good quality assurance

0.15

4

0.60

Freshly-cooked meal

0.10

4

0.40

Strong sales numbers of Uncle John’s Fried Chicken

0.07

4

0.28

Strong company culture and reputation

0.05

3

0.15

Various chicken variants and sauces

0.01

3

0.03

Weaknesses

 

Ministop: Smaller market share than 7-Eleven (in of number of stores)

0.16

2

0.32

Ministop: Less rapid expansion rate than Family Mart

0.16

2

0.32

Slightly higher price than its competitors

0.03

1

0.03

Taste and quality of the gravy

0.02

1

0.02

TOTAL

1.00

 

3.15

 

 

ALTERNATIVE MARKETING STRATEGIES • Product Expansion • Sales Packages for bulk orders or corporate s • Expansion of branches

PRODUCT EXPANSION: 4PS PRODUCT PRICE • Go Spicy • Competitive relative to • Go Healthy original variant and 7eleven and Family Mart PLACE • In-store • Investment of more equipment • Supply

PROMOTION • In-store • Free taste • Radio media and social media

SHORT AND LONG-TERM PROJECTIONS • Immediate effects • On Cost • Research and development • Logistics • Marketing

• On Revenue • Expected increase in sales (assuming good marketing)

SHORT AND LONG-TERM PROJECTIONS • Expected long-term results • Expected increase in trend with increased demand • Expected decrease in operations as they choose which of their new offerings is most practical to sustain

• Special actions • GOOD ADVERTISING: radio, print, and social media • Free samples