Marketing Management

Syndicate Group V
Anindita Putri 29320172
Adee M. Ilham 29320163
Farah Andayani 298320028
Farras M. Azhar 29320169
Background of the case
HOL owner would like to expand its business by having 25 branches in 2020. However, based
on the survey conducted every year, it was noted that the customer highly satisfied with HOL
Restaurant however HOL brand is not that popular. Therefore the owner try to increase
customer brand awareness to support the future growth including reaching their goals to have
25 branches.

Product Information
The restaurant offer varieties of menus, which are lasagna, southern fried chicken, soups,
salads and pasta.
1. Lasagna has several variants namely beef, truffle mushroom, chicken, vegetable, carbonara,
alfredo, three cheese, pesto, seafood, and frederico. However the bestseller lasagan is the beef
one, because it generates 80% of HOL's sales.
2. Southern fried chicken is the family recipe of Chef's Congmon and is the best seller of Chef
Congmon's family restaurant.
3. HOL also provides soups and salads as the side dishes.
4. HOL pasta is the chef's specialty that consist of spagetthi and meatballs, as well as macaroni
and cheese.

Business/ Industry SItuation

HOL Business overview:
In november 2018, HOL has 7 braches that consist of 4 owner-branches and 3 franchised
branches. HOL is located in Metropolitan Manila and in Shanghai. From the financial
perspective HOL revenue has been increasing time to time, this is align with increase in
customer satisfaction and brand awareness. However the percentage of customer awareness of
HOL brand is still below the owner expectation in order to support HOL expansion plan of 25
branches in 2020.

Philippines' Food industry current situation:

In November 2018 it was noted that food industry in philippines contributed around 500 billion
peso annually and hired around 500,000 workers. In addition, the food market in Phillipines
consist of 7000 restaurant, 5000 fast food chains, and around 4000 refreshment stands, kiosk,
and counters. This recent growing of food industry is driven by increase in Filipinos purchasing
power capabilities and urbanization.

Growth of Philippines food industry:

According to Mardor Intellegence it is predicted that the food sector will grow 6.18 percent
annually between 2018 - 2023. The increase was driven by customer characteristic that are
willing to experience a new restaurant with varieties of menu options, particularly international
and local cuisine. Besides, Philipines poppulation condition also contributes to the growth of this
food industry as 1/3 percent of phillipines population are millenials who has seen as the biggest
spender in food industry and has a busy life-style thus lead to have a tendency for having food
outside whether takeaway or home deliver. Furthermore, traffic condition in manila also create
more opportunity for food home delivery service.
Despite the mentioned opportunity, the declining in peso currency against US dollar can be a
hinder the food industry to growth as it will influence the population purchasing power
capabilities and consequently demanding people to be cautious about their spending including
spending in dining-out. careful spending from the decline currency of Peso to US dollar as it will
influence the filipinos purchasing power and consequently declining in food industry.

Competition Situation
There are 4 major competitors of HOL namely Pancake House, Conti's, Mary Grace Cafe, and
Mom & Tina's Bakery Cafe. Based on the information provided we could devided the
competitors based on the advantages of each competitor compare to HOL.

1. Price:
It is known that the average cost of dining for two people in HOL is around 700 Peso. However
Mary Grace Cafe offered a food with average budget of 500 peso for two people and it is
cheaper than HOL price. Thus Mary Grace Cafe has a big threat for HOL in term of price war.
The remaining competitors offered an higher cost of dining for two people compares to HOL.

2. Place availiability:
In 2018 HOL total has 7 branches including 1 branch in Shanghai. The biggest competitor is
Pancake House which has 100 branches all over the world including 52 branches in Phillipines.
Following by Mary Grace Cafe, who has 45 braches consist of cafes and kiosk. And the last is
from Conti's who has 14 branches. The lowest threat will comes from Mom & Tina's bakery cafe
as they only have 4 branches which is lower than HOL number of branches.

3. Brand awareness through promotion activity:

It is known that HOL promote their brands by putting ads in the store, post it online in facebook,
and through engaging with third party delivery services namely Foodpanda and Honeybee. In
term of promoting their brand, the biggest threat for HOL may comes from Pancake House. A
Pancake House is part of global group, so they have previlage to promote their brands offline
and online through various media such as billboard, maganize and social media platform.

4. Product:
House of lasagna is known for their unique lasagna. The biggest threat for HOL product may
comes from Mary, Contis, and Mom & Tina's bakery as they also offers pasta which is similiar to
HOL product. The lowest threat may comes from Pancake house as they have their own
uniqueness and different with HOL's types of product.

Marketing Mix
Marketing mix implemented by HOL is following the 4ps model which are:
1. Product
- Including side dish side as soups, salads. Main dishes such as lasagna, and Chef pasta
speciality such as spagetthi meatballs, and baked macaroni and cheese. To give ease for
customer in choosing the food, the menu were provided with few sign that represent a different
categories such as heart for chef's family recipe, tiles boxes for best seller menu, and thumbs
up for must try menu. The food is also made with fresh and premium ingredients to maintain the
quality of food provided and increase customer satisfaction.

2. Price
- The product were offered in 3 size, namely single, half tray, and full tray. which gives more
option to customer to fit in their budget. Usual dining budger for two people is 700 Peso and the
menu started from 55 Peso.

3. Place
- Currently has 7 branches, consist of 4 company-owned resturants and 3 franchised
restaurants. The company use 3Cs strategy for the place.
a. Come in: Restaurant located in main malls of Manila, and a presence in Shanghai to services
the chinese and international consumers. HOL focus to provide a good ambience of their
branches in order to increase the customer satisfaction when dining in the restaurant.
b. Click: its a online delivery ordered system provides by HOL. Previously HOL using third
parties such as foodpanda and honestbee to increase their brand awareness, but after HOL
was known by customer and the cost of engaging this parties become a consideration. Next,
HOL decided to provide the delivered system by themselves with a minimum spending of 500
peso to be eligble for this services.
c. Call: this one is for telephone booking and home delivery order for fast service.

4. Promotion
- Promotion conducting through digital communication and on-site ads. Digitally, HOL used
facebook to increase their brand awareness. Besides, the two online order and delivery partners
(food panda and honestbee) also contributes to promote the brand.

Problems
How to increase brand awareness of HOL product ?

Alternatives
Utilize social media to advertize HOL, engage a new customer, and retain the customer.

Alternative Analysis
Why utilizing a social media become a good alternatives?

1. Strength:
a. HOL has been advertising their product on facebook. In order to retain the customer, it is
necessary for HOL to initiate a creative program to increase the HOL brand online.
This can be done in two ways as follows:
1. Giving a free food for customer who dine-in and upload their picture enjoying HOL menu
online. Paricularly using hastag to increase the poppularity of HOL brand in search engine.
2. Create a giveaway programs on facebook with the prize to enjoy HOL product.
b. As target market of HOL is middle income household, then current situation of phillipines
population is align with HOL target market. It is known that middle income household tend to
spend 35% of their income on food, thus by keeping the target market I believe that HOL
business will be grow in the future.

2. Weakness:
a. Advertising online means that the product will be known only by people that has
computer/smartphone/internet literacy. In 2018, the internet penetration among filipinos is 63%
thus leave the rest of the population that do not actively involved in interet taken out of HOL
target market as they dont have the capabilities to hear brand HOL online. Subsequently to
engage customer in every level, offline advertising such as in magazine, billboard, or car
advertising is also necessary to have.
b. HOL need to have dedicated personnel that are responsible to handle this online platform
account whether to communicate with customer or promoting HOL Brand.

3. Opportunity:
a. Phillipines is the world leader in social media usage. HOL could reach the customer online
especially by advertising in social media. Eventhough HOL has been advertised themselves in
Facebook, HOL could advertise their product on instagram. It is known that there are 10 millions
filipinos in instagram and HOL could promote themselves by putting ads on instagram, or by
reaching out to instagram celebrity in order to get endorse and introduce HOL product to their
followers. Subsequently increase the brand awareness among the instagram followers that
leads to finding a potential customer.

4. Threat
1. Creating a customer program required a cost, such as giving a free food, giveaway, or
engaging an instagram celebrity. Thus HOL must allocate more of their budget for advertising.
2. There will be a threat from competitors, as some of them also advertising themselves on
social media.

Recommendations
Based on the alternatives provided, the strength and opportunity to utilize social media in
promoting HOL is outweight the weakness and threat faced by HOL. HOL could be benefits
from phillipines population condition which is align with HOL target market and to seize the
opportunity of the development of internet and social media usage in Phillipines to increase
HOL brand awareness online thus it can be expose to more wider potential customer from all
over phillipines not only from manila. Subsequently, lead to a demand from new potential
customer to open another brach near the customer residence and contirbutes toward the
owner's goal which is to have 25 branches in 2020.