MARKETING STRATEGY PLAN OF RED RIBBON EXECUTIVE SUMARRY - Red Ribbon is one of the country's fastest growing bakeshop chains that serves dessert, breads and pastries, bringing memories of joy and togetherness, family and home back. Red Ribbon continues to make every moment so sweet to people of all ages in every Filipino celebration, whether it's an everyday family gathering or a grand feast. STUDY BACKGROUND Brief History - Red Ribbon was established in 1979 by Amalia Hizon Mercado and her husband, Renato Mercado as a small cake shop along Timog Avenue in Quezon City. - By 1984, it opened its first overseas outlet in West Covina, California. The company began franchising in 1999. Today it has grown to over 270 outlets all over the Philippines and over 30 stores in US with locations in California, Nevada, Washington, Hawaii, New York, New Jersey and Virginia. In 2005, Red Ribbon was acquired by Jollibee Foods Corporation. Mission and Vision MISSION - To serve great tasting food bringing the joy of eating to everyone. VISSION -To be the leader in the bakeshop industry and the most loved bakeshop brand in the Philippines. Product/Service offerings -PRODUCT: Black wood with a drink Red Ribbon is planned to get family and friends together with its specialty desserts and products. It is primarily a bakery selling pastries such as mammon, ensaymada, cookies, a large range of specialty cakes and red ribbon rolls. The shop also sells made-to-order and theme desserts. One of the best-selling heir products, regarded as 'Flagship' products, is their Black Forest Cake. They are strict mainly in quality and have a vision of being the leading bakery delivering quality products. Filipinos are also sweet-toothed, and they normally begin their day by drinking something spicy in the morning. Cold drinks are also preferred, particularly in very hot weather. MACRO-ENVIRONMENTAL ANALYSIS A. ECONOMIC -In so doing, the company is consistent in introducing more new ideas in the bakeshop field and in competing in the cakes and pastry industry, but this must be coupled with consumer and market insight. They make sure that their innovations resonate with customers and they always stay in touch with market wants, introducing refreshing flavors that match their occasion. B. POLITICO-LEGAL - These Terms of Service and any separate agreements whereby they provide the Services shall be governed by and construed in accordance with the laws of 200 Spectrum Center Drive Irvine California US 92618. C. SOCIOCULTURAL - the Filipinos and are now recognized as part of the culture of giving some gifts, like for example they visiting Red Ribbon to buy cakes for parties and other activities. D. DEMOGRAPHIC - Red Ribbon’s target market is any ages and any gender just have a money to buy. E.TECHNOLOGICAL - In this new era anything you can do using technology for example in this business they can use their gadgets in promoting their products and business. F. NATURAL - The nature of red ribbon is known to be a favorite bakeshop of all industry where people buy their cakes for celebrating birthdays and parties. IV. OPPORTUNITIES AND THREATS OPPURTUNITIES - Competition that is emerging the market will help to expand their market and target more oppurtunities. - New emerging technologies to improve their marketing efforts. Operations and its whole business system. - Emerging new costumers behavior that can push them to innovate and improve their products. - Can improve on online portal by gift delivery service and credit card acceptance. - The country has a growing population both in numbers and choice of foods. TREATS - They have strong competitors for example. Goldilocks. - New cafes and bakeshops are coming out. - Competitors sell mostly the same products, and have regular customers as well as business that regularly buy from them. - Shortage on products during holiday and special occasion. V. MICRO- ENVIRONMENTAL ANALYSIS A. THE COMPANY - In 1979, what started out as a hobby-induced business in Timog, Quezon City, expanded into a proudly Filipino-owned and professionally run business. Red Ribbon has grown to over 450 outlets all over the Philippines and over 30 stores in the US. With its acquisition in October 2005 by Jollibee Foods Corporation, Red Ribbon entered a new phase in its company history. The company soon became one of the biggest and fastest growing bakeshops in the Philippines and has since been a part of the Filipino family's celebrations and special moments. B. SUPPLIERS - In 1979, what started out as a hobby-induced business in Timog, Quezon City, expanded into a proudly Filipino-owned and professionally run business. Red Ribbon has grown to over 450 outlets all over the Philippines and over 30 stores in the US. With its acquisition in October 2005 by Jollibee Foods Corporation, Red Ribbon entered a new phase in its company history. The company soon became one of the biggest and fastest growing bakeshops in the Philippines and has since been a part of the Filipino family's celebrations and special moments C. CUSTOMERS -Red Ribbon’s target market is primarily consumers in classes C and D. Class C consumers are usually average – above average consumers D. COMPETITORS - Red Ribbon Bakeshop's top 7 competitors are Goldilocks Bakeshop, Inc., Julie's Bakeshop, Gardenia Bakeries Philippines, Universal Robina Dot Com, Rebisco Group Of Companies, Monde Nissin and Hui Lau Shan. E. PUBLICS - Red Ribbon Bakeshop, Inc.[1] is a bakery chain based in the Philippines, which produces and distributes cakes and pastries. VI. STRENGHT AND WEAKNESS STRENGTH - They have large infrastructure that allows them to manufacture or to innovate new product and easier for marketing efforts. - They have a nationwide product distribution. - They have a good business systems. - They have pomos for cakes example. Dedication, celebration, anf other cakes. - Several locations within a city. WEAKNESS - They cake sales are so high that people don’t even know the have other food. - Low customers relationship management. - Operating hours are limited. 11:AM – 9:00 PM - They only advertise on their cakes. VII. THE MARKET A. MARKET SIZE - Determine whether Red Ribbon Bakeshop grew or shrank during the last recession. This is useful in estimating the financial strength and credit risk of the company. Compare how recession-proof Red Ribbon Bakeshop is relative to the industry overall. While a new recession may strike a particular industry, measuring the industry and company's robustness during the last recession estimates its ability to weather future recessions. B. MARKET NEEDS - Red Ribbon will be serving the A & B and the age 36-45 markets as they are the groups with the most health conscious individuals. Red Ribbon will be making a new line of products, which will be more “healthy”. More healthy in the sense that these products will be low in fat and sugar but high in protein and fiber. Red Ribbon has the financial capabilities of researching ways into creating products high in protein and fiber but low in fat and sugar. A possible way of doing this would be to using protein powders in replacement of their sugar powders for flavoring and adding oats into the cakes to increase the fiber contents. C. MARKET TREND - In so doing, the company is consistent in introducing more new ideas in the bakeshop field. “Innovation is important in competing in the cakes and pastry industry, but this must be coupled with consumer and market insight,” Zinnia said. “We make sure that our innovations resonate with customers. We always stay in touch with market wants, introducing refreshing flavors that match their occasion VIII. MARKETING OBJECTIVES - From a homemaker's hobby to a now professionally run business, RED RIBBON BAKESHOP's sweet story began with one goal at heart- to make every family celebration truly special by creating delicious and beautiful cakes. IX. MARKETING STRATEGIES - The group’s target market for Red Ribbon would be the individuals, who are health conscious and primarily those in the A & B market. The group will be using more of a breadth strategy when it comes to serving the health conscious market. Consumers in the A & B market have more disposable income. And in the generation today it is more expensive to be healthy. Healthy products these days are more expensive as almost everything is already processed so fresh products are usually priced higher! A & B consumers have more income, which makes them the market that is more capable of purchasing “healthy” products or more willing to purchase these products. A. PRODUCT/SERVICE STRATEGY I. TARGET MARKET - Red Ribbon’s target market is primarily consumers in classes C and D. Class C consumers are usually average – above average consumers. II. BRAND POSITIONING - The last segment for brand attributes would be the individuals, who are health conscious. The ones who probably need to maintain their weight. The ones who watch the amount of calories, fat and sugar that they are eating. The great thing about this segment is that no one is currently serving this segment when it comes to the pastry industry. Pastries are all about carbohydrates and sugar, which is a big no no to the weight watching individuals. Being able to serve this segment would yield high reward at a high risk. This segment is willing to spend as much as possible as long as it does not disrupt their diet. B. PRICING STRATEGY - Our new line of protein cakes will be using four different types of pricing strategies. Firstly, our product will be a little cost so, which will make us put a higher margin than the regular cakes of Red Ribbon; whey protein/soy protein isolate is a little expensive. Second, for the first few months of operations, we would be doing penetration pricing by selling the product at a lower price, but ofcourse we would be advertising it as something like 30% off, if you buy the cake right now. So that makes it similar to promotional pricing, which is the third strategy. But our main strategy would be premium pricing. We want to position our product as a high class product. For one, you don’t see anyone selling protein cakes. And two, we are not mass marketing, so we are really targeting a single market. Without any competition and without any similar products, we can really price our products high. C. DISTRIBUTION STRATEGY - In 1984, Red Ribbon Bakeshop in the US was first opened in West Covina, Southern California. Now, there are over 14 Red Ribbon Bakeshop branches found in California and are continuously expanded up until now. As for Filipinos who are residing there, they are craving for Red Ribbon Bakeshop products from their home country and somehow alleviate their homesickness D. ADVERTICING AND PROMOING STRATEGY - With the new line of products and the reinvented place that we wish to implement, Red Ribbon will need a lot of advertising. Starting off in Cagayan, Red Ribbon will create a new facebook page that will be updated regularly. Red Ribbon must have regular market/promote their products to their consumers regularly. Maybe held events from facebook, and whoever wins gets a free cake! Red Ribbon will also be posting posters and flyers all over the city that they are now serving protein cakes! To be able to ensure a market, Red Ribbon should advertise at gyms, so people working out can eat their protein cakes either as a pre or post workout meal! Red Ribbon will be advertising the new cakes and its benefits! X. TACTICAL IMPLEMENTATION - Red Ribbon Fund Management has long been committed to Impact Investment Strategies. For more than a decade it has been at the cutting edge of strategies that not only look to deliver above market rate returns for its investors, but also to achieve the best, most positive impacts on our communities, our wider society and on the environment generally. It is important that these strategies are also sustainable, offering long-term solutions within the mainstream economy; because the Fund Managers at Red Ribbon understand short term, one off interventions however positive their transient impact might be, can only ever be of limited significance to the wider community. XI. MARKETING BUDGET - Red ribbon marketing budget is based on what advertisement they want. XII. FEEDBACK - Red Ribbon is always on our menu whenever there's a celebration. It's affordable and easy to buy. XIII. FINANCIAL PROJECTION - The capital of red ribbon industry is amounting to 6million to 7 million while Red ribbon franchise is amounting of 600,00 pesos.
