Go Nuts Donuts Case Study.docx

8/9/2019 Go Nuts Donuts Case Study.docx

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De La Salle UniversityRamon V. del Rosario College of BusinessManagement and Organization Department

Go Nut Donuts Case Analysis

Submittedin artial !ulfillment of t"e Re#uirements in

M$%&'&M Mar(eting Management

To:Ms. Regina Dy

By:Lim) RapunzelSiao) Limuel

Mer*ado) Mel*"or

+, -anuary +,/


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COMPANY BACKGROUND

0o 1uts Donuts is a food *"ain t"at 2as founded in +,,' by t"e %rillana and De

O*ampo family. %"ey initially attempted to bring t"e 3meri*an based donut *ompany $rispy

$reme but 2ere denied so t"ey de*ided to *reate t"eir o2n and founded t"e Donut eople

4n*orporation 55 t"e parent *ompany of 0o 1uts Donuts. %o date) t"ere are +6 stores in t"e"ilippines) ma7ority of 2"i*" are in Metro Manila and are *urrently being managed by Mr.

Mi*"ael %rillana.

%"e produ*ts t"at t"ey sell are almost similar to 2"at $rispy $reme is offering but

*"eaper) bigger and less s2eet. 3t one time) t"e *ompany 2as selling around +,),,, donuts per

day and in +,+) 4 Ventures Retail 0roup) o2ner of t"e lo*al fran*"ise of 8ig"lands Coffee

broug"t /,9 sta(e in t"e *ompany t"at enabled t"em to offer *ustomers 2it" Coffee on top of

t"eir Regular) remium and rima :more premium; doug"nuts) izza and 1on5*offee

beverages. :0o(ong2ei5C"eng L. +,,/< 0o 1uts Donuts +,&< =i(ipedia +,/;

STATEMENT OF THE PROBLEM

8o2 *an 0o 1uts Donuts in*rease its mar(et s"are given t"at t"ere are many*ompetitors>

OBECT!"E

%"is paper aims to?

@ Suggest a mar(eting strategy by analyzing t"e *urrent state of t"e *ompany to aid it inin*reasing its mar(et s"are.

@ Resear*" t"e fa*ts and appre*iate t"e *urrent operations) "istory and vision of t"e*ompany and its *ompetitors.

AREAS OF CONS!DERAT!ON#ASSUMPT!ONS

%"e group 2ould ta(e t"e point of vie2 of t"e Mr. Mi*"ael %rillana :resident; in solvingt"e *ase study. %"e areas for *onsideration are t"e fa*ts) *ompetitors and mar(eting strategy0o 1uts Donuts s"ould employ to in*rease its mar(et s"are and t"e group 2ould also assume

t"e follo2ing?

• %"e group 2ould assume t"at t"e t"is *ase study 2as "eld in +,+

• 4 Ventures "as re*ently entered t"e partners"ip 2it" 0o 1uts Donuts

• -.Co Donuts "as 7ust entered t"e mar(et


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SEGMENTAT!ON$ TARGET!NG AND POS!T!ON!NG

4t is important for a *ompany to define its mar(et first before pro*eeding 2it" mar(et

segmentation. 0o 1uts Donuts belong in t"e food industry. But 2it" mar(et segmentation) it 2ill

unli(ely be *overing t"e food industry overall. 4t is ne*essary to divide t"e food industry into sub5

mar(ets. 0o 1uts Donuts is *lassified under t"e ba(ery industry. %"e *ompany *"ose to fo*uson doug"nuts as its main produ*ts. 0o 1uts Donuts is a !ilipino5o2ned *ompany establis"ed in

t"e "ilippines.

0o 1uts Donuts *annot address t"e needs of all *onsumers. eople "ave different

needs and 2ants 2"i*" *annot be provided by only one (ind of produ*t. %"us) it is important for

t"e *ompany to allo*ate its produ*ts to *ater to different (inds of *onsumers or a parti*ular

mar(et. %"is is 2"ere t"e Mar(et Segmentation) %argeting and ositioning :S%; ro*ess enters

t"e s*ene. S% 2ill guide 0o 1uts Donuts to *ontrol t"e fa*tors t"at influen*e *onsumers to

pur*"ase its produ*ts) by developing an effe*tive mar(eting miA.

Market SegmentationSegmentation allo2s 0o 1uts Donuts to divide t"e mar(et into groups based on similar

*"ara*teristi*s< be"avior and responses. %"is 2ill enable t"e *ompany to serve its mar(et

effe*tively. 0o 1uts Donuts is not *onfined to only one mar(et segment. %"e mar(et

segmentation variables for 0o 1uts Donuts are geograp"i*) demograp"i* and psy*"ograp"i* 55

a *ombination of t"ree among t"e siA variables.

A. Segment Evaluation

3fter identifying t"e mar(et segments) it is important t"at t"ey’d be evaluated against a

set of *riteria. %"e first *riterion is "omogeneity. ="et"er t"e *onsumers in ea*" segment are

similar in terms of *"ara*teristi*s and t"eir needs> 4n t"e *ase of 0o 1uts Donuts) t"e *ompany2as *reated to be an international brand. 1onet"eless) t"e *ompany’s stores 2ere divided into

regions and even *ountries. Ma7ority of its mar(et is from Metro Manila ranging from mega malls

to small outlets. 4t also eApanded to regions outside Metro Manila su*" as Davao City) parts of

Luzon area and Visayas. 4n +,,) it fulfilled its dream to be*ome an international brand by

fran*"ising to *ountries su*" as $u2ait) Malaysia) C"ina and 3ustralia.

=it" demograp"i* segmentation) t"e *ompany loo(s into different *onsumer

*"ara*teristi*s su*" as age) o**upation) so*ial *lass) in*ome and et*. 4n t"is *ase) 0o 1uts

Donuts appeals *onsumers in every age. %"eir produ*ts loo( as inviting as t"eir names su*"

3mazing 0laze) C"o*olate !rost) ummy Vanilla. %"ey also *ater to bot" "ig"5in*ome to lo25in*ome individuals as t"eir ba(ed goods 2ere pri*ed reasonably. Sin*e it is affordable) many

people 2ere enti*ed to buy in boAes.

Lastly) psy*"ograp"i* segmentation involves *onsumer lifestyle) preferen*es) opinions

and interests. 0o 1uts Donuts spent an enormous effort in t"eir Resear*" and Development to

formulate a produ*t t"at is less s2eet t"an t"e usual ba(ed goods. %"eir rationale is t"at


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s2eeter goods tend to lose t"eir appeal as time goes by. 4t is indeed true for most people. %o

innovate) t"e *ompany introdu*ed produ*ts su*" as 0o 1uts Donuts L4%) lo2 *arbo"ydrate) no

sugar ba(ed goods to address to t"e needs of t"e "ealt"5*ons*ious *onsumers. %"eir produ*ts

also last for a longer period 2"i*" allo2s people to buy t"em for “pasalubongs”.

Re*ently) t"e *ompany formed a partners"ip 2it" 8ig"lands Coffee to be sold in t"eir

outlets. 4t understood t"e fast5pa*ed lifestyle of its target mar(et. !ood industry is in*reasing

rapidly. 3 number of *onsumers prefer to eat out) grab a #ui*( sna*( and *offee on t"eir 2ay to

2or( or after s*"ool.

%"e se*ond *riterion is "eterogeneity. 4t is eApounded above t"at 0o 1uts Donuts’

mar(et 2as *learly divided into different groups. 4t is important for t"e *ompany to (no2 t"at

ea*" segment is uni#ue and t"at ea*" segment "as different needs. %"e t"ird one is

measurability and t"e fourt" is substantiality. =ill t"e *ompany be able to measure t"e size of

t"e mar(et segment> 4s t"e mar(et large enoug" in terms of sales> es. During its first laun*")

0o 1uts Donuts 2as able to sell 6,, doug"nuts in its only store at Bonifa*io 8ig" Street. =it"

its eApansion) t"eir sales in*reased to +,),,, more doug"nuts in a day.

%"e fift" *riterion is its a**essibility. %"e segment s"ould be rea*"able in terms of

distribution. %"e *ompany "as +6 stores in t"e *ountry and ma7ority of 2"i*" is in metro manila

but t"ey 2ere able to eApand to provin*ial areas and internationally. %"e siAt" and sevent"

*riteria are a*tionability and responsiveness respe*tively. %"ese *riteria re#uire t"e

implementation of a mar(eting miA 2"i*" 2ill be dis*ussed furt"er on t"e Mar(et %argeting

se*tion of t"is paper.

B. Construct Segment Profiles

4n t"is stage) *onsumers in ea*" segment are being des*ribed for t"e purpose of

*ompre"ending 2"at t"ey 2ant and 2"at t"ey need. %"e first mar(et segment is geograp"i*. 4t

"as stores nation52ide and international. %"is is t"e said mar(et segment’s profile. Consumers

2it"in Metro Manila prefer food stores t"at are a**essible Be*ause of t"eir fast5pa*ed lifestyle

and *ongested area) *onsumers go to food stores in t"e malls) s"opping *enters) near s*"ools)

along t"e streets on t"eir 2ay to t"e LR%EMR% or t"e 7eepney stop.

Consumers in t"e provin*ial areas 2ill try anyt"ing t"at is ne2. %"e only 2ay to (eep

t"eir loyalty is t"e #uality and affordability of t"e produ*t. 3**essibility is not big of a *on*ern but

laun*"ing first inside a mall is preferable. Be*ause t"e *ompany desires to be an international

brand) it already opened fran*"ises in $u2ait and ot"er *ountries. 4t also delivers abroad t"ru

D8L or !edA 2"i*" ma(es it a**essible.

%"e se*ond one is t"e demograp"i* mar(et segment. Sin*e t"is mar(et is broad) t"e

*ompany *an target t"e follo2ing sub5se*tions? age) o**upation) so*ial *lass and in*ome. 0o

1uts Donuts made its produ*ts lig"ter) softer and less s2eet 2it" a melt5in5your mout" #uality.

%"is definitely appeals to *onsumers of all ages. 3dults 2ill love t"e slig"tly s2eet taste 2"ile


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t"e *"ildren 2ill love t"e *olorful de*orated doug"nuts and its mout" melting teAture.

Consumers in t"is mar(et are parti*ular 2"et"er t"e pri*e meets t"e #uality. !ortunately for 0o

1uts Donuts) its produ*ts are at affordable pri*e and *an be boug"t in bul(.

%"e t"ird one is psy*"ograp"i*. Consumers in t"is mar(et 2ill be t"e most *"allenging

be*ause t"is mar(et is based on t"eir opinion) interests and lifestyle. 4t 2ill be #uite diffi*ult to let

one produ*t *ater to different types of people 2it" different preferen*es. 1onet"eless) 0o 1uts

Donuts 2as able to produ*e“"ealt"’’produ*ts 2"i*" are t"e *urrent *raze in t"e food industry.

Diet food is t"e trend t"ese past fe2 years.

C. Market Segment Evaluation

%"e last step in mar(et segmentation is to evaluate t"e attra*tiveness of ea*" segment

2"i*" re#uires eAtensive resear*" and gat"ered data. %"is may involve #uantitative met"ods in

*ombination 2it" #ualitative assessment of t"e *ompany. %"is paper designates , as t"e

"ig"est rating and as t"e lo2est.

Geographic Segment Demographic Segment Psychographic

Segment

Financial Issues

Segment Size 10 10 7

Segment Growth Rate 10 10 7

Profit Margins 8 9 7

Structural

Attractiveness

Competitors 10 10 8

Distribution Channels 9 9 9

Strategic Direction

Strategy 9 10 8

Goals 10 10 9

Marketing Expertise

Resources 9 10 9


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Capability 10 10 10

Role of brand

Opportunity Cost

Growth Options 10 10 10

TOTAL: 95 98 84

Market Targeting

3mong t"e mar(et segments above5mentioned) t"e *ompany t"en *"ooses 2"i*"

mar(et segment it s"ould fo*us on. %"e #uantitative evaluation above presented t"at t"e

demograp"i* segmentation "as t"e "ig"est rating. 4n t"is *ase) 0o 1uts Donuts tend to fo*us its

efforts in t"is segment. Under t"is segment) t"ere are several fa*tors su*" as age) so*ial *lass)in*ome) et*. 4t *an be dedu*ed t"at 0o 1uts Donuts applies mass mar(eting. 4t said t"at t"e

*ompany "as little advertising but are ta(ing steps to promote its produ*ts gradually.

Mass mar(eting or undifferentiated mar(eting designs a mar(eting program for a produ*t

2it" superior image t"at *an be sold to t"e broadest number of buyers via mass distribution.

%"is strategy *reates t"e largest potential mar(et at t"e lo2est *osts. 0o 1uts Donuts "as

outlets from malls to t"e streets *atering to t"e masses. 4t "as bot" mass5produ*ed and fres"ly5

ba(ed doug"nuts. Be*ause of its affordable pri*e) people often buy in boAes.

Market Positioning

Mar(et positioning allo2s t"e *ompany to differentiate its produ*t in a big industry. 4t is

used to be per*eived differently from its *ompetitors. =it" t"is) t"e *ompany *an "ig"lig"t t"e

best *"ara*teristi*s of its produ*ts and promote its *ompetitive advantages. %"e main goal is to

be*ome t"e“*"oi*e”for its target mar(et or *onsumers.

0o 1uts Donuts is 2ell5(no2n for its uni#ue taste eAperien*e "aving a less s2eet but

lig"ter) softer and melt5in5your mout" #uality. %"is is 2"at t"e *ompany *alls as t"e “1e2

0eneration Doug"nut”. 4t also "as a 2"a*(y brand personality 2it" its inviting doug"nut names

su*" as 3mazing 0laze or ummy Vanilla. Most of its goods are also fres"ly5ba(ed 2"enserved as opposed to t"e usual mass5produ*ed produ*ts of its *ompetitors. 4t is ideal for ta(e

"ome treats be*ause of its longer s"elf life *ompared to ot"er doug"nuts in t"e mar(et.

Marketing Mix


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Management marketing decisions are classified into four using the 4P’s or the Marketing

Mix. This is necessary to determine the product’s brand offer. Go Nuts Donuts is one the key

players in the industry catering to almost every type of consumers. The company has store

outlets operating at malls to crowded streets in Metro Manila. It also has franchise outlets in the

provinces and certain countries abroad. To understand where Go Nuts Donuts is today,

marketing mix model will provide a better analysis of how the company operates.

Product

Doughnuts are the main products of the company. Before Go Nuts Donuts launched its first

flagship store, its research and development team worked with American partners to develop

the “New Generation Doughnut”. Its products are now desired by many because of its less

sweet, lighter, softer, melt-in-your mouth quality. The company believes that products which are

too sweet tend to lose their appeal over time. This specific taste is also created to target the

international market. Its doughnuts also has a longer shelf life of 3 days compared to its

competitors which makes them ideal for “pasalubong” and take home treats.

Together with its expansion, Do Nuts Donuts has new products introduced aside from its usual

Amazing Glaze. It has cro-nuts, pocket pies, Go Nuts Donuts pizza. It also has Go Nuts Donuts

LITES, low carbs, high fiber, no sugar products for the health conscious consumers. Recently,

the company is in partnership with Highlands Coffee. It already sells beverages such as juice

and coffee.

Price

Go Nuts Donuts products are priced from P36 and up. What makes it so affordable is the price

of products bought in boxes. These prices can range from P90 to P285 only. The company

caters to all types of consumers, both high income and low income. This paper will present a

comparison of the Go Nuts Donuts prices and other key player’s product prices.

Dunkin Donuts’ regular doughnuts costs P20, while their premium and croissant doughnuts canrange from P35, P75 and up. Mr. Donut offers the cheapest but limited products which can

range from P12 to P15. It’s other products such as pies and bread costs P20 to P40. The

biggest players in the industry were Krispy Kreme and J. Co. Their product starts with the price

of P42 and up.


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Place

Go Nuts Donuts has about 30 stores in the Philippines and a number of them are also

franchises. Its first flagship store is located at Bonfiacio Global City. It currently has several

shops and kiosks in Metro Manila commercial areas. It expanded outside Metro Manila such as

Davao City and certain parts of the Luzon area. Because it has a goal of becoming an

international brand, Go Nuts Donuts opened its first international store in Kuwait. It now has

franchise stores in Malaysia, China and Australia.

Promotion

Go Nuts Donuts is not big on advertising. People also often tend to confuse Go Nuts Donuts to

be somewhat similar with Dunkin Donuts or Mr. Donut. The company relies on word-of-mouth

marketing and franchises. It promotes thru its fliers and social media, such as Facebook, Twitter

and Instagram. It captivates customers thru its mouth-watering product designs, whacky and fun

doughnut names. Overall, Go Nuts Donuts has very little advertising.

THEORET!CAL FRAME%ORK an& S%OT Analysis

Despite its tremendous su**ess) it *annot be disregarded t"at t"ere are many players in

t"e doug"nut store industry. Only Mr. Donut and 0o 1uts Donuts are lo*al brands and ma7ority

are international brands. 4t is vital to understand and study t"e fa*tors influen*ing a business

operation. %"is paper 2ill ta*(le t"e eAternal fa*tors involved in t"e *ase of 0o 1uts Donuts t"ru

orter ’s !ive !or*es Model of Competition.

Mi*"ael orter "as identified five for*es t"at determine t"e intrinsi* long5run

attra*tiveness of a mar(er or mar(et segment. %"e *ompany "as to *onsider t"e industry

*ompetitors) ne2 entrants) substitutes) buyers and suppliers. %"is is an appli*ation of orter ’s

!ive !or*es Model in t"e *ase of 0o 1uts Donuts?

Fi'u(e ): Go Nuts Donuts Po(te( ’s Fi*e Fo(+es A,,li+ation

Threat of New Entrants1e2 *ompetitors pose a t"reat to eAisting *ompetitors in an industry. 3 profitable

industry) 2"ere entry barriers are lo2) 2ill attra*t ne2 players. 3s a *onse#uen*e) ne2

*ompetitors entering t"e industry *an de*rease t"e mar(et s"are and profitability of eAisting

players.

1 Kotler, P. & Keller, K.L. (2012).Marketing Management.New Jersey: Prentice Hall.


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%"e in*reasing number of ne2 startup *ompetitors is t"e biggest t"reat fa*ed by

establis"ed small and medium businesses.+ %"e ne2 player in t"e industry) in t"e *ase of 0o

1uts Donuts) is t"e -. Co Donuts F Coffee. %"is is) "o2ever) not a start5up *ompany but a 2ell5

(no2n international brand 2"i*" re*ently entered t"e "ilippine mar(et.

Threat of Substitute Products

Consumers *an s"ift to alternatives if t"ey 2is" to do so sin*e ba(ery industry *onsistsof a 2ide5range of produ*ts. Ba(ed goods are not only limited to doug"nuts. 4f a *onsumer

*raves for s2eets) "e *an buy a *oo(ie or a *up*a(e pri*ed *"eaper t"an a doug"nut. =e are

also *urrently in t"e "eig"t of "ealt" and organi* food *raze. Consumers may prefer traditional

2"ite bread or 2"eat bread over doug"nuts.

Threat of Bargaining Power of Customers

Consumers are pri*e sensitive and t"is *an put t"e *ompanies under pressure.

Companies also struggle to (eep *onsumer loyalty. 4t is a t"reat to businesses 2"en buyers

possess a strong bargaining po2er. %"ey *an s"ift from one produ*t to anot"er at t"eir li(ing

and most businesses 2ill try ad7usting to t"eir 2is"es. 3 good defines is to develop superior offers 2"i*" strong buyers *ould not refuse.

Threat of Suliers’Bargaining Power

2 Torrance, J. (2014).Growing number of startup competitors is biggest threat to businesses.Real

Business. Retrieved from:http://realbusiness.co.uk/article/27360-growing-number-of-startup-competitors-

is-biggest-threat-to-businesses.

http://realbusiness.co.uk/article/27360-growing-number-of-startup-competitors-is-biggest-threat-to-businesseshttp://realbusiness.co.uk/article/27360-growing-number-of-startup-competitors-is-biggest-threat-to-businesseshttp://realbusiness.co.uk/article/27360-growing-number-of-startup-competitors-is-biggest-threat-to-businesseshttp://realbusiness.co.uk/article/27360-growing-number-of-startup-competitors-is-biggest-threat-to-businesseshttp://realbusiness.co.uk/article/27360-growing-number-of-startup-competitors-is-biggest-threat-to-businesses


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Suppliers are t"e sour*es of ra2 materials) ma*"inery) servi*es. =it"out t"e suppliers) a

*ompany 2ill be for*ed to manufa*ture its o2n ra2 materials 2"i*" 2ill re#uire eAtra time and

eApenses. Suppliers *an ta(e advantage of a *ompany’s and an industry’s profitability by

in*reasing t"e pri*es of t"eir ra2 materials. %"us) it is important for a business to develop a

"armonious relations"ip 2it" its supplier and to be able to negotiate fairly.

!ndustr" #ivals

Rivalry among *ompanies in t"e same industry is normal. 8o2ever) intense *ompetition

also poses a t"reat to a business operation and su**ess. Competition 2ill eventually lead to

pri*e 2ars) advertising *ompetitions) introdu*tion of ne2 produ*ts. %"is 2ill mean more

eApenses to most businesses.

SWOT Analysis

HELPFUL HARMFUL

I

N

T

E

R

N

A

L

S%R10%8S· Consumers resear*" base isstrong

· 8ouse "old brand name· Consistent and *o"erent *ore

produ*ts· Differentiated ri*e strategy· “fres"ly made” doug"nuts· ' day s"elf life

=3$1SSS· La*( of produ*t originality· 4neffe*tiveElo2 advertising· Stri*t fran*"ising pro*ess· !e2 outlets *ompared to its

*ompetitors· Some produ*ts are made in

response to fads :.0.Cronuts;· De*lining *ustomer loyalty

E

X T

E

R

N

A

L

OOR%U14%4S• Repositioning of brand and image

t"roug" t"eir partners"ip 2it"8ig"lands *offee

· Release ne2 and easierfran*"ising pro*ess

· Use of ne2 mar(eting *"annelsto retou*" 2it" *ustomers

· Capitalize on t"e use of so*ialmedia to in*rease branda2areness.

%8R3%S· Large *ompetitors in t"e mar(et

· Consumer loyalty d2indling· C"ange in *onsumer preferen*e in

terms of sna*(ing "ealt"ier · C"anging eating "abits of target

*onsumers· ntran*e of -.Co 2"i*" intensified

t"e eAisting *ompetition

ALTERNAT!"E COURSES OF ACT!ON

4n order to in*rease t"eir s"are of t"e Doug"nut *onsumer mar(et) 0o1uts Donuts may ta(e

several *ourses of a*tion. 3fter analyzing t"e fa*ts and data t"at 2ere dis*ussed in t"e paper

t"e group *ame up 2it" t"ree :'; alternative *ourses :3C3s; of a*tion t"at *ould aid t"e

*ompany in*rease its mar(et s"are. %"e alternative a*tions are furt"er dis*ussed belo2?

; 01D *an revamp t"eir fran*"ising pro*ess to ensure t"at t"e fees 2ill be more

affordable to a prospe*ting fran*"isee. %"ey *an do t"is by sour*ing more ineApensive


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e#uipment and materials t"at 2ill bring do2n t"e *ost of putting up a 01D store)

"opefully attra*ting more potential investors.

+; stablis" a solid mar(eting plan by *on*entrating t"eir efforts on t"eir ne2 partners"ip

2it" 8ig"lands Coffee. !uture 0o 1uts Donuts stores *ould be put up alongside ne2

8ig"lands Coffee stores and synergize t"eir produ*ts. %"e + *ompanies *ould do 2"atseveral $rispy $reme and -amba -ui*e stores are doing by putting up a store neAt to

ea*" ot"er. %"e stores 2ill not only *reate t"e perfe*t pairing :Doug"nuts and Coffee;

but it 2ill also give t"e *onsumers t"e *omplete eAperien*e of en7oying premium *offee

2it" eA*ellent doug"nuts t"at 01D "as to offer.

'; 4nvest in a *ustomer relations"ip management :CRM; systems. CRM is defined as

strategies and te*"nologies t"at enable *ompanies to manage and evaluate *ustomer

data in order to in*rease sales and mar(et s"are by strengt"ening relations"ip 2it"

*ustomers :Rouse +,/;. =e are no2 in t"e digital age 2"erein *ompanies) government

and even normal people gat"er and analyze data to ensure t"ey "ave informed

de*isions. %"e *ompany *ould invest in a CRM designed spe*ifi*ally for t"em 2it" t"eirgoal) strategy and vision in mind in order to gain *ompetitive advantage in t"e mar(et.

%"e *ompany *ould also employ a simple CRM tool to gat"er data in order to get to

(no2 t"eir *ustomers more so t"at t"ey *ould *reate strategies and promotions targeting

t"ese types of *ustomers by analyzing t"e data t"ey *ould a*#uire. %"ey *ould also use

t"is system to address *ustomer *omplaints and suggestion to ma(e sure t"at t"ese old

*ustomers 2ould be loyal and *ome ba*( again.

a*" of t"e 3C3Gs 2ould definitely "ave in*reased Mar(eting efforts namely internet

mar(eting) end5user mar(eting) and advertising and *onsumer resear*". %"is 2ould in*lude t"e

in*rease in internet presen*e fo*using on so*ial media li(e !a*eboo() %2itter and food blogst"at "ave a 2ide follo2ing. !or t"e data produ*ed in t"e resear*"es) t"is 2ill "elp streamline t"e

produ*t5line of 01D. "asing out t"e produ*ts t"at "ave s"o2n 2ea( *ustomer follo2ing and

strengt"ening t"e produ*ts t"at "ave in*reased mar(et sales.

RECOMMENDAT!ON AND ACT!ON PLAN

%"e group finds t"at a *ombination of 3C3 and + 2ould be t"e most benefi*ial

alternative for 01D. 3n in*rease in t"e *ompanyGs fran*"isee 2ould also in*rease t"e

*ustomers served by in*reasing t"e number of stores in and around Metro Manila. 3C3 H+ 2ill

also give 01D an opportunity to ride t"e popularity of t"eir ne2 partner) 8ig"lands Coffee. 3s

previously mentioned in t"e 3C3) future fran*"ised stores may be paired 2it" ne2 8ig"lands

Coffee s"ops. %"is is to in*rease t"e 2"ole ICoffee and Doug"nut eAperien*eJ t"at if *ombined)2ill be t"e perfe*t lig"t pi*(5me5up sna*( for people on t"e go.

REFERENCES


12/12

0o(ong2ei5C"eng) L. :+,,/ !ebruary;. %8 M311 3CKU43O O! %8 DOU081U%

=ORLD retrieved on -anuary +,& from? "ttp?EE222.ne2sflas".orgE+,,'E,&EtlEtl,+++."tm

0o 1uts Donuts :+,&;. Retrieved on +, -anuary +,& from? "ttp?EEgonutsdonuts.*omE

Rouse) M :+,/;. Customer Relations"ip Management retrieved on +, -anuary +,& from

"ttp?EEsear*"*rm.te*"target.*omEdefinitionECRM

$otler) . F $eller) $.L. :+,+;. Marketing Management. 1e2 -ersey? renti*e 8all.

%orran*e) -. :+,/;. $rowing number of startu cometitors is biggest threat to businesses.

Real Business. Retrieved from? "ttp?EErealbusiness.*o.u(Earti*leE+6',5gro2ing5number5of5

startup5*ompetitors5is5biggest5t"reat5to5businesses .
http://www.newsflash.org/2003/05/tl/tl012282.htmhttp://gonutsdonuts.com/http://searchcrm.techtarget.com/definition/CRMhttp://realbusiness.co.uk/article/27360-growing-number-of-startup-competitors-is-biggest-threat-to-businesseshttp://realbusiness.co.uk/article/27360-growing-number-of-startup-competitors-is-biggest-threat-to-businesseshttp://realbusiness.co.uk/article/27360-growing-number-of-startup-competitors-is-biggest-threat-to-businesseshttp://www.newsflash.org/2003/05/tl/tl012282.htmhttp://gonutsdonuts.com/http://searchcrm.techtarget.com/definition/CRMhttp://realbusiness.co.uk/article/27360-growing-number-of-startup-competitors-is-biggest-threat-to-businesseshttp://realbusiness.co.uk/article/27360-growing-number-of-startup-competitors-is-biggest-threat-to-businesses

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