I.

Executive Summary
II. Company Background

A. HISTORY

The Trappist Monastic Food Products (TMFP) started in Guimaras in the year 1972.
The name “Trappist” came from the word “El Trappist” in Italy where the monks came
from. They had their first factory in the year 1974. The jams and dried mangoes were their
first products. The monks sustained their living by selling the said products. However, it took
them time in producing such products because it was done manually through the
“sangkalan” and thus resulted to a limited production.
Eventually, one superior monk from abroad sponsored a factory that is now called
monastic food products.
The factory started 10 years ago (2007) in which the products were just mango and
guava jam. One of their best selling products is the mango bars. Anything with mango
flavour is saleable. TMFP is also the first mover to introduce such products in Guimaras.

III. Company Strategy

Existing:

IV. Internal Assessment

a. Value Chain
b. IFE Matrix and Analysis

Strengths Weight Rating Weighted Score

First mover in innovating local fruits in creating a
0.05 3 0.15
world class pasalubong item.
Committed to creating social and economic impact. 0.10 4 0.4
Products are produced by monks which gives it an
0.02 3 0.06
extra appeal to the customers.
Creation of free marketing buzz through word by
0.03 3 0.09
mouth of customers.
Piggybacked on an international brand name. 0.03 3 0.09
Assisted by DOST with regards to their production. 0.08 4 0.32
Wide variation of products. 0.08 3 0.24
Increased production. 0.05 4 0.2
Presence in the local and international market. 0.09 4 0.36
Weaknesses
Unfamiliar to the marketing value of product
0.02 2 0.04
packaging and labeling.
Poor organizational structure which leads to a poor
0.08 1 0.08
delegation of workload.
Lack of experience in the field of managing a
0.07 2 0.14
business.
Lack of marketing tactics. 0.06 1 0.06
Seasonality of raw materials of the products. 0.08 2 0.16
Limited manpower. 0.02 2 0.04
Poor online platform presences. 0.04 1 0.04
Short period of product shelf life. 0.1 1 0.1
Total 1.00

Short analysis

V. External Assessment
a. Porter’ 5 Forces Model
 Threat of new entrants: low
Barriers to entry: low
Brand loyalty: high
Capital requirement: low
Economies of scale: high

Threat of
new
entrants

Rivalry among
existing
Bargaining Bargaining
competitors
power of power of
suppliers Rivalry among existing competitors – Low buyers
Number of competitors – low
Diversity of competitors – low
Quality differences – high
Bargaining power of suppliers – high Brand loyalty – high Bargaining power of buyers:
Supplier concentration -low Industry concentration - low Number of customer – high
Differentiation of inputs- low Price sensitivity – low
Switching cost of suppliers: high Buyer’s information availability ow
Buyer’s availability to substitute: low

Threat of
substitute
products

Threat of substitute product- high

Number of substitute products available – low
Buyer propensity to substitute-high
Perceived level of product differentiation – low
 i. Rivalry among competitors
ii. Bargaining power of suppliers
The bargaining supplier power is low due to the fact of the main raw materials for
the products are produced from the company’s own orchard. The monks living inside the
abbey engages in agricultural farming and they own an orchard of mangoes, pineapples,
calamansi and many more fruit bearing trees. The good or service that is outsourced by
the company is the packaging material and there are already many business
establishments that exist to offer the same service therefore there is a possibility that the
cost for switching packaging suppliers would also be low.

iii. Bargaining power of buyers

Bargaining power of consumers is slightly weak because of the established and
highly differentiated product mix of Trappist. There is a presence of substitute products
in the market, but Trappist already established itself as the leading brand in terms of
quality and packaging a pasalubong product as a whole. To switch to other brands would
somehow tend to compromise a buyer’s standard of quality and patronage to well-
packaged products.

iv. Threat of new entrants

The Trappist Monastic Food products is already an established pasalubong center in

the country. The company is famed for producing quality mango products coming from
Guimaras. Wherein guimaras was known to produce sweet and tasty mangoes. With these
advantages, the threat of new entrants is quite low. Trappist have earned the loyalty of
most consumers, and have already made its name it pasalubong industry. However, the
moderate capital requirement of establishing a new pasalubong centers makes it
moderately easy for small business to enter the market. On the other hand, The barriers to
entry in the pasalubong industry is quite high because new entrants will have to exert
more effort in establishing its name, gaining loyal patronages, and introducing innovative
products in order to compete with trappist monastic food products. Competitors have also
to lower their prices in order to gain more consumers. Overall the likelihood of new
entrants is low.
v. Threat of substitute products

In this industry, the threat to substitute is fairly high due to the fact that there are
dozens of fruit-based food pasalubong products that are present. However, establishing
customer loyalty is significant in this industry because sensitivity of the consumers to the
prices is fairly low. Also, the propensity of the buyers to buy substitute is high because of
 the brand preference and taste preferences of the customers will be anticipated to change
overtime.

b. EFE Matrix and Analysis

VI. Porter’s 5 Generic Strategies
VII. SWOT Analysis

S W
 First mover in means of innovating  Unfamiliar to the marketing value of
local fruits into value added products good product packaging and labeling
 Committed to creating social and  Poor organizational structure
economic impact  No formal training in business
 Produced by monks management
 Creation of free marketing buzz  No delegation of workload
 Piggybacked on an International Brand  No advertising strategy and special
name promotions on its product
O T
 Increased of consumer income and  Seasonality issue of the products used
faster paced lifestyle stimulated  Competition: Competitors have a similar
consumption of convenience foods product and new entrants.
like baked goods  Loyalty: Popular foods and food brands
 Increasing number of retail chains are becoming and already available in
 New international market the shelves of various stores in Japan.
 Growth in demand for nutritious foods  Government: Policies and food
 Employment and support for local standards and Import Restrictions
agricultural industry

Analysis/summary (?)

VIII. Strategy Review and Evaluation

SPACE MATRIX(?)

COMPETITIVE POSITION FINANCIAL POSITION

Market Share (-2) ROI (7)

Product Quality (-1) Liquidity (5)
Customer Loyalty (-2) Working Capital (6)
Loyalty Utilization (-3) Cash Flow (5)
Technological Knowhow (-2) Inventory Turnover (5)
Control over suppliers and distributors (-2)
Average: 5.6
Average: -2.14
 STABILITY POSITION INDUSTRY POSITION

Technological Changes (-1) Growth Potential (7)

Rate of Inflation (-3) Profit Potential (5)
Demand Variability (-2) Financial Stability (5)
Price Revenue and Competition (-5) Resource Utilization (6)
Barriers to Entry (-2) Case of entry into the market (4)
Competitive Pressure (-3) Productivity (7)
Risk involved in business (-4)
Average: 5.67
Average: -2.86

ANALYSIS:

DIAGRAM:

IX. Recommendation: Strategy and Vision, Mission statements and objectives

a. Vision Statement

Bring quality, unique, locally-made and genuinely Filipino pasalubong products

to every doorstep.

b. Mission Statement

Delivering quality pasalubong through the ideals and values of monastic life.

c. Core Values

S-ocial Responsibility; supporting the operations of the Abbey and to further

improve community sustainability in Guimaras island.

T-radition; keeping in mind the monastic life wherein selfless service is valued
above profit.
I-nnovation; surprising customer taste buds through creation of value added
products from locally produced materials.
R-espect; respect towards nature, respect towards their brothers, respect towards
others, respect in all aspects of work they do.

d. Strategies and Objectives