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
Ministops 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 terms 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 members 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.
Support 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 pass 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.
Support 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 Johns 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. Its crisp to the bite and carries the same taste as its
meat, so you know youre 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)
..Ive been bombarded with demands, constant insistent demands, to try Ministops fried
chicken. When I finally did, it immediately made it to the top of my list, next to Pancake
Houses Classic Pan Chicken and Jollibees Chickenjoy. Ministops 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 Johns 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 Johns 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.
Ministops top-selling food item.
Ready to eat category in Ministop now contributes almost 33% of its total
business, with Uncle Johns 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, heres where the similarities end. The Ministop gravy is
a decent, light brown sauce that doesnt 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 terms 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 passed 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 passed through the 500 store mark and it is possible that number will double by
2018

However, FamilyMart (joint 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

1.04

0.52

0.78

Value for money

0.21

0.84

0.63

0.84

Freshness

0.17

0.68

0.51

0.34

Size/weight

0.15

0.6

0.45

0.6

Availability

0.11

0.33

0.33

0.33

Accessibility

0.06

0.18

0.12

0.24

Price competitiveness

0.04

0.12

0.16

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

0.84

0.16

0.64

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

0.12

0.48

Expansion of food processing, modernization of the retail sector and increasing

refrigeration ownership pushes demand growth of meat.

0.08

0.24

Threats

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

0.15

0.60

Consumers demand healthier options, and may prefer convenience stores

featuring calorie counted meals (Family mart, Sprout).

0.13

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

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

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

1.00

Good quality assurance

0.15

0.60

Freshly-cooked meal

0.10

0.40

Strong sales numbers of Uncle Johns Fried Chicken

0.07

0.28

Strong company culture and reputation

0.05

0.15

Various chicken variants and sauces

0.01

0.03

Weaknesses

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

0.16

0.32

Ministop: Less rapid expansion rate than Family Mart

0.16

0.32

Slightly higher price than its competitors

0.03

0.03

Taste and quality of the gravy

0.02

0.02

TOTAL

1.00

3.15

ALTERNATIVE MARKETING STRATEGIES

Product Expansion
Sales Packages for bulk orders or corporate accounts
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