FORMAL REPORT

ANCHOR BAY GASTROPUB

By:
Bagtas, Patricia Ann
Capil, Trisha Angelie
Cunan, Joriza
Gonzales, John Kenneth
Lauricio, Helena Marie
Sanchez, Ma. Louise
Tulabut, Irene Arantxa

Received by:
Lester Glenn Serrano
Manager

FORMAL REPORTS
EXECUTIVE SUMMARY
Anchor Bay Gastropub A World of Beer is a restobar (restaurant/bar)
which is offering local and imported beers paired with seafood bundles
and other products which are not usually offered by other similar
establishments. Currently, the company is experiencing continuous
losses and is not meeting the target market set by the management.
In this report, the consulting team presented the findings and
recommendations as to how the performance of the company can be
improved. The report also contains the manner as to how the consulting
team managed to derive information both from internal and external
sources.
It was discovered through the results of the survey performed that
the company lacks effort in advertising and other marketing
strategies. The consultants suggests that the company, should enhance
its marketing strategy; specifically in factors like price, product
and the ambiance of the place. These factors were the factors mostly
considered by the customers in selecting a place to hang out and also
the main reasons why they prefer other places than Anchor Bay
Gastropub.
Based from the observations above, the consulting team came up with
the following recommendations:
With respect to ambiance, we recommend that the customer
preferences should be prioritized to adapt to the changing needs
of potential customers.
With respect to price, we recommend that the company should
limit the price of their product in such a way that a person will
only spend 300-500 pesos.
With respect to the products, we recommend that the business
must expand its selection of local beers and it should now
consider adding barbeque variants to its menu to attract more
customers.
With respect to marketing/advertising, we recommend that the
company employ the use of other mediums in advertising like
putting up a billboard, inviting food bloggers, and handing out
flyers.
In general, the consulting team also suggests that the company
should take the risk of spending money to focus on advertising and
improving the look/ambiance of the place. The use of additional
investment will enable the company to fulfill the improvements it
needs based from the result of the survey.
These recommendations are based from the information gathered
through the course of the engagement. The consulting team suggests

that these recommendations must be implemented to help the company in

improving its performance.
As consultants, the implementation of the recommendations mentioned
is not within our authority; we therefor hold the management of the
company responsible for the implementation of the recommendations.

PROJECT BACKGROUND
Bruno and Diego Grill, the original name of the place, is located at
Lot 1&2 Rivera Lim Street Diamond Subdivision Balibago, Angeles City,
Pampanga. Bruno and Diego is owned by Bruno and Diego Inc., which is a
corporation holding several investments across the region. Bruno and
Diego Grill was shut down on year 2012 due to the failure of the
management to maintain stable operation. It was evident at that time
that the place was establishing an identity known to many as a place
where bar fight was common. The management decided to shut down the
operations of the grill with hopes that on a foreseeable future, it
can re-open and re-establish a good name.
Three years later, still under Bruno and Diego Inc., Anchor Bay
Gastropub A World of Beer was launched with a starting capital of 3.5
million. The change in the name of the place brought with it the idea
of a new beginning. The managements goal was to remove the perception
in the mind of the customers that the place is the same as what it is
before. The management decided to change the products they offer by
putting in imported beers and eliminating local beers from its menu.
This strategy was expected by the management to somehow filter the
type of customers that will be accommodated.
Currently, Anchor bay Gastropub is offering a variety of products
that is not usually offered by other establishments nearby. Seafood
boodle, chicken tenders and mussel soup are just few of the food they
offer. Despite of this innovative idea of serving imported beers and
seafood boodle, Anchor Bay Gastropub can still be considered
underperforming compared to its competitors. This current situation
presents an opportunity for improvement but needs an immediate and
accurate solution.
Upon the interview with the manager of Anchor Bay Gastropub,
Lester Glenn Serrano, the consulting team was able to grasp
current situation and fully understand the needs of the company.
manager also shared with the consulting team his outlook on
current situation of the company and suggestions on how solve
problem.

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Based from this, the consulting team decided to look on other

aspects that may affect the performance of the company and focus on
areas where the company can improve. Although there is a specific area
that the operations manager is really concerned, and that is the
marketing strategy that the company is currently undertaking, the

consulting team still preferred to look on other factors like the

prices, products, services, location, and ambiance.

OBJECTIVES OF THE ENGAGEMENT

This study aims to:
1. Know the different areas of the company which affect its growth in
operation.
2. Determine the factors that have an effect on the profitability of
the company.
3. Identify the strengths and weaknesses of the current operation.
4. Examine the qualitative factors that affect the decisions of target
market in choosing which establishment they are likely to go to.
5. Develop possible solutions that will increase the companys market
share and satisfy the needs of its target market.

SCOPE AND LIMITATION OF THE ENGAGEMENT

This engagement aims to give guidance to Anchor Bay Gastropub on
how to improve its current operations so as to better cater the needs
of its target market, increase its market share, and boost its
profitability.
The financial statement that will be used for this engagement
will be coming from owner himself.
This engagement was conducted around Balibago areas and 50 people
were used as respondents in conducting the survey.
This engagement limits its coverage to the people along the area
only because they are the most likely to be the customers of different
bars in Balibago during the time of the survey.
This engagement considers which among the different factors such as
price, service, location, products, or ambiance, does a person
consider in choosing a place to hangout. Each of the respondents is
given the same questionnaire to answer.

ENGAGEMENT METHODOLOGY
This engagement has a qualitative descriptive design in order to
fully understand the areas of Anchor Bays business that could be
improved, as well as the factors most considered by people in choosing
where to spend their free time.
The consultants used interview, survey,
observation as the methods of data collection.

document

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and

The primary data was gathered by conducting an interview with the

operations manager of Anchor Bay, and through a survey of the chosen
respondents.
The
interview
questionnaire
was
prepared
by
the
consultants in order to get an overview of the companys profile. The
consultants also prepared a survey questionnaire that highlighted the
areas of the establishment that would most likely affect its
operations and at the same time be considered by its target market.
These questionnaires were distributed to the respondents at a
convenient time.
The respondents for this engagement are people who live in Balibago,
Angeles City. A sample size of 50 respondents was set by the
consultants, and a non-probability sampling technique was used to
determine the subjects of the engagement. This sampling technique is
called convenience sampling, where in the subjects are selected due to
their convenient accessibility and proximity to the researchers
(Explorable.com, 2009). This was employed by the consultants since the
population was too big and there were time constraints.
For
supplementary
information,
secondary
sources
were
used,
particularly the Statement of Profit or Loss of the company. This was
used for the in-depth analysis of the primary data. The consultants
also administered an observation regarding the business operations, as
well as the competitors near its location.

ANALYSIS AND SYNTHESIS

The consulting team has gathered information both from internal and
external sources that helped them understand the current situation of
Anchor Bay Gastropub. Through the interview with the operations
manager, Mr. Lester Glenn Serrano, and the survey of the target
market, the consulting team was able to identify the main areas of
concern that should be given immediate solution to improve the
operations of the company.
The operations manager revealed through the interview, that the
company is currently underperforming despite all the efforts to keep
up with its competition. Almost through the entire first year of
operations, the company has been incurring losses. The manager
suggested that the reason behind this maybe be because of the already

established mindset of the customers that the place is still the same
as is before, which is prone to bar fights and commotions. As a
result, the management decided that Anchor Bay Gastropub will only
offer imported beers to its customers on its first few months of
operations. This move was made by the management to deal with the
locals getting drunk that are more into drinking local beers, which
the manager thought prompted the happening of unwanted events in the
place. As a result of this management decision, prices of the products
offered were considerably set higher compared to the competitors.
Through time, lesser and lesser customers are being catered by the
company.
After few months of operations, the management finally decided to
give-in in serving local beers, offering happy hours promo and
lowering the prices of the products offered. Eventually, this action
by the management, somehow attracted new customers and helped improve
the performance of the company. The manager indicated that the current
performance of the company is still not enough and that there is still
room for improvement in the operations of the company.
The manager insisted that the engagement should focus on improving
the marketing strategies being applied by the company; but as agreed
by the members of the team, the engagement should look upon other
possible factors that will help on improving the performance of the
company. Internal information from the company, which came in form of
income statement and the information from the interview with the
manager, was used in relating the results of the survey (external
information). The survey, on the other hand, served as an instrument
for the consulting team to measure the preferences of the target
market.
Factors like price, service, products, location and ambiance which
may affect the performance of the company are taken into consideration
in constructing the survey questionnaire.
Incidentally, the results of the survey showed that out of the 50
respondents only 22 individuals knows Anchor Bay Gastropub and 28 of
them dont have knowledge of the place. This result solidified the
lapse in the advertisement/marketing efforts of the company, which was
previously stated by the operations manager.
For those who know the place, the question of which factor would
make these individuals go to a different place other than Anchor Bay
Gastropub. Out of 22 individuals, 8 of them suggested that the
ambiance of the place is the main reason why they would probably go to
a different place. Next to factor to ambiance, is the price. Out of
the 22 individuals, 6 of them suggested that the prices of the
products in the place would be the reason why they would go to a
different place. The other factors, location, products, and service,
gathered votes of 4, 3, and 1 accordingly. The results for the other
factors are considered for the supplemental recommendations but are
not prioritized, considering the results of the first 2 factors are
more than half of the 22 individuals that knows Anchor Bay Gastropub.

For those that do not know the place, the question of what factor do
they
consider
when
choosing
a
place
to
hangout
was
asked.
Incidentally, parallel to the result of the question asked to those
who know the place, the ambiance of the place is also the most
considered factor when choosing a place to hang out; 14 out of the 28
individuals corresponded to this choice. The next considered factor is
price, with 6 votes; followed by location, with 4 votes; followed by
products and service, with 3 and 1 vote accordingly.
On the other hand, information from the internal sources revealed
that the company is incurring net losses primarily because of its high
operating expenses. The company is spending an average of P 70 815.80
per month on its rental expense for the first 5 months of operation,
that alone is considerably high for a business that is still finding
its way to the market. The average cost of sales percentage for the
first 5 months of operations is 55.42%. The average percentage of the
other expenses to the total operating expenses is 69.67%.
The consulting team based their conclusion and recommendations from
the results of the procedures performed in this engagement and which
are stated above.

FINDINGS AND CONCLUSION

Based from the individual observation of the members, interview with
the operations manager and the survey conducted, the consulting team
was able to identify the factors that are affecting the performance of
the company.
Through the results gathered from the survey, the consulting team
was able to identify ambiance as the most considered factor when
choosing a place to hang out and the main reason why customers go to
different places other than Anchor Bay Gastropub. The second factor
next to ambiance, which is considered by customers, is the price.
The problem in the prices of the products of the company is believed
to be connected to the mindset of the customers established when
Anchor Bay Gastropub was only serving imported beers. Even after the
company decided to finally offer local beers and happy hour promos,
the perception of high prices had not been erased in the minds of the
customers. This problem will continue to plague the company, unless
massive efforts of making it known to the public that the company
offers is currently offering local beers with lower prices will be
undertaken.
Furthermore, the results of the survey solidified the lapses of the
management in terms of the advertising/marketing efforts done to
promote the company itself. Having more than 50% (28/50 individuals)
of the respondents not having any knowledge of the company is an
indicator of the problem. Based also from the observation of the
consulting
team,
upon
visiting
the
place
for
ocular

inspection/observation, there were no tarpaulins or any kind of

signage in-front of the place to entice possible customers passing by
the main road. Current marketing strategies used by the company
include offering special promos, promoting via social media and wordof-mouth marketing. The consulting team suggests that these efforts
are not enough to reach the target market of the company.
Another problem that the consulting team was able to observe is the
companys high operating expense, particularly the rent expense.
Again, based from the observation of the consulting team upon visiting
the place, they were able to observe the large portion of the space
not being utilized by the management. Having ambiance as the main
factor why the customers prefer other places than Anchor Bay Gastropub
only puts more weight in improving the place itself. If the company
will be able to utilize the idle space in the place, it will be able
to make the most out of the money it pays for the rent and a greater
chance of having more customers also comes with it.
The consulting team is certain that these problems are requiring
immediate and accurate solutions. The consulting team, on the other
hand, is not assuring immediate and absolute results from these
actions; only the most probable solutions based from the information
gathered by the consulting team are manifested in this engagement. The
management still has the authority in implementing the recommendations
suggested and the future actions that will be taken by the company.

RECOMMENDATIONS & EXPECTED BENEFITS

In general, the consulting team also suggests that the company
should take the risk of spending money to focus on advertising and
improving the look/ambiance of the place. The use of additional
investment will enable the company to fulfill the improvements it
needs based from the result of the survey.
Specific recommendations and expected benefits are further
divided into the four factors the consulting team sought to improve:
1. PRICING
For pricing, the company needs to consider the price range that the
customers perceived to be the value of your product.
We recommend
that the company should limit the price of their product in such a way
that a person will only spend 300-500 pesos because based on the
result of our survey, that amount is what most of the customers are
willing to pay on a night-out.
Considering the current price of the
companys product, there is
a need to reduce the price to meet the customer's capacity in terms of
spending money. We suggest that you may add different options in the
menu that are already in combo, that is, it includes food, drinks,

side dish and other products that is usually demanded by customers and
set the price of each combination within the range of 300-500 pesos as
possible. In doing this there is a need to reduce the cost of
producing the products which includes not just the direct cost to
produce them but also a portion of other costs such as utilities and
other administrative and overhead costs.
The manager needs also to be aware of what competitors are charging
for similar products. He should always be updated about how others
charge their products by asking others such as relatives, friends, coinvestors who have already tried their products and service and
through internet or news. Based on our observation, some of the
competitors have lower prices and this may be one of the reasons why
other customers prefer to patronize their products. We suggest that
the company should set a price that is lower or at least the same with
that of the competitors to address this issue. However, if changing
the price will not be appropriate for the
business, better compete
with the quality of the companys products and service, ambiance and
other factors that will set your business from others and the
management must communicate to the customers the reason why the price
of their products and service is different from others. Remember that
competing on price sometimes is not necessary and should be avoided
because it is risky. Leveling your price with that of the competitors
will not guaranty that you can build good relationship with your
customers and that their loyalty will remain to you.
By lowering the price according to what the customers are willing to
spend or using competitive-based pricing, customers will perceive that
the products the company offers are affordable and even cheaper than
the other. These strategies can help the business increase its overall
sales volume and it can also create goodwill among existing customers
and encourage new ones to try their products and services. This will
be more beneficial if the company can control its cost effectively.
Also by using competitive-based strategy, the manager can immediately
set a price because it is based only with the competitors price and
the company can avoid price competition that can damage the business.
2. AMBIANCE
Ambiance is the special atmosphere or mood created by a particular
environment, which enables people to chill, relax, find serenity or
just have fun. It is also considered as the top factor that induces
customers to come to a place.
From the survey conducted by the consultants, the top answer that
the respondents usually find in looking for a food establishment or a
place to hang-out is good ambiance. Various external factors such as
social and physical surroundings
In line with this, results from the survey shows that most of the
people prefer an open-space and a quiet place to chill and hang-out

with friends. These factors can be used by the company as

opportunities to gain market share. Anchor Bay Gastro Pub has an openspace that can satisfy customers' preferences. It also has a quiet
atmosphere that enables customers to chat with their family and
friends and be able to catch up with them. All the company needs to do
is to enhance more the interior of its establishment in order to cope
up with the changing preferences of potential customers.
The consultants also recommend that the idle space in the company's
location should be utilized so that it can maximize its space to
accommodate customers who prefer to go to a cozy and relaxing place to
hang-out. Furthermore, in order to cater customers who loves to keep
their gatherings private, the company can use the idle space to build
KTV rooms.
As a whole, the engagement team suggests that the company should be
continuously updated on the changing preferences of the customers in
order to cope up with its competitors. If the factors enumerated
herein will be given ample consideration and resources, the company
may achieve an increase in its market share. As what was mentioned
beforehand, a good place, mood and atmosphere parallels to a
successful marketing strategy that will entice and induce customers to
patronize their food establishment.
3. PRODUCTS
For products, we recommend the following:

Expand the selection of local beers.

Anchor Bay Gastropubs menu is dominated by international beers and
cocktails. The survey showed that the market generally prefers local
beers compared with imported ones. One of the reasons for this
preference is the difference in the price of the drinks. As Anchor Bay
Gastropub is now slowly changing its target market, the business must
expand its selection of local beers to attract more customers.

Offer barbeque variants.

The shift in the target market of Anchor Bay entails change in its
menu in terms of food as well. Though one of its edges against
competitors is its offering of international dishes such as seafood
boodle, it should now consider adding barbeque variants to its menu.
The respondents of the survey prefer eating cheap and light meals when
hanging out.
By doing so, the company can expect that more customers will be more
inclined to go to Anchor Bay Gastropub when they find out that the
menu has expanded to cater more affordable food and drinks.

The increase in customers will lead to an increase in sales. This

could offset the increase in the costs of the new products and further
provide profit if effective pricing methods are used.
This may help the business in rebuilding their
establishment that can cater to all types of customers.

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4. MARKETING
Marketing can be regarded as an imperative tool for businesses to
increase their sales and maintain a competitive advantage against
their competitors in the market. Having said that, each business
should put a lot of effort and a considerable amount of time, when it
comes to reaching the public, especially its target market, to make
the business more efficient and more effective.
Anchor Bay Gastropub currently employs the use of social media in
advertising their products, as well as informing the public about
their different promos and music that they will host. Since the survey
shows that more than half of the respondents don't know Anchor Bay
Gastropub exists, we can infer that advertising the company through
the use of social media is not sufficient enough to reach the public.
Because of this, Anchor Bay Gastropub should improve its current
marketing strategy through different sources of mediums.
A marketing strategy that could help the company, is simply
introducing it to the public. Nowadays, advertisements help a lot of
companies, and this should be no different. Billboards are big and
hard to miss and if used right, such as choosing the right colors and
the right message, it can entice a whole lot of people to visit Anchor
Bay Gastropub. The location of the billboard can also help with
publicity, for example, I recommend that Anchor Bay should put up a
billboard along the Abacan bridge, where people near Balibago and
where it is located, will notice it.
Just because social media is not as sufficient as it should be when
it comes to advertising this company, it does not mean that it does
not work. Anchor Bay Gastropub can also advertise online through the
use of varying popular websites, such as Facebook, Twitter, Instagram,
and even Snapchat. Many people like food that looks good and there are
many who takes pictures and posts them online. And this is the best
type of advertisement that any company can ask for, the word of mouth.
People tend to trust their friends or family better than what the
reviews say online. Furthermore, if Anchor Bay Gastropub can produce
beautiful food that many of their customers can capture, not only will
the company gain new customers, it will also get to keep its existing
ones.
There are many companies that entice the public in places, such as
malls, to get the word out that their place just opened. Anchor Bay
Gastropub can do this by giving sample platters to passersby and

handing out flyers, which can attract a group of potential customers,

thus increasing their target market. Anchor Bay Gastropub can also
invite food critics or bloggers who influences social media and the
public. This can help advertise the company to others who aren't
exactly in the country, but are planning to visit, further broadening
their customer spectrum.
Anchor Bay Gastropub should care about how they can make their
profits. The company should make its profit by creating customer
value,
providing
customer
satisfaction,
and
making
long-term
relationships. The most important factor of any business is its
customers, because without them, there is no business. Customers
should feel as if they are the number one priority and if they feel
that, not only is the business building long-term relationships, it is
also providing satisfaction to the customers and to the business.
Moreover, the marketing strategies for Anchor Bay Gastropub or any
company should be both dynamic and interactive, orderly planned, and
consistently flexible, in order for a firm to react to any unforeseen
circumstances, while keeping focused on a specific goal. The hardest
factor for any business is change, and if the company can't adapt to
the changes, it won't last very long.
The company can expect that the different methods specified above
can help the company boosts its profitability and increase its market
share through gaining new customers as well maintaining the loyal
ones, but not without a cost. Even though it comes with costs, it will
only be minimal because most of the techniques mentioned dont require
a fee before it can be employed. We think that after employing these
different techniques, the benefits will outweigh the cost.

IMPLEMENTATION GUIDE
Based form the recommendations derived from the engagement, the
consulting team came up with a guide in instance the management
decides to apply the formulated solutions.
First, to properly implement the recommendation regarding pricing,
the company must continuously get the opinion of their customers if
they are satisfied with the price that they are paying for the
products and services that they received. This will guide the company
on how to charge their products and services that would be reasonable
for their customers. The company must also remember that even though
they need to use competitor's prices as a basis for pricing, it is
very important that the manager always consider the costs that they
are incurring to produce products and other incidental costs as a
basis in computing the price that they need to charge. Cost reduction
is necessary in implementing the recommendations given so that prices
of products can also be reduced and the company can be able to level
their prices or even lower with that of the competitors.
Second, the management should maintain the current relaxing and
soothing ambiance of the place, most-especially the native atmosphere
of the nipa-hut inspired structure which gives the customers a
different kind of vibe while they hang out. This could be a good
marketing strategy for the company in increasing its market share. The
company owner wants to focus more in its marketing rather than
improving its environment, however, the maintenance of its ambiance
should also be taken into consideration because with it, the company
can attract more customers and be able to sustain its operations.
Third, the company should first give notice to the suppliers of the
present products that their orders will be lessened due to the change
in the menu. At the same time, the company should start looking for
reliable suppliers of the proposed products. Further assessment of the
estimated additional costs should also be done, and then compared with
the estimated additional revenues.
Fourth, marketing strategy implementation requires a purposeful
tactical marketing plan aligned with the core business growth
strategies. Anchor Bay Gastropub needs to develop a team which will
meticulously focus on improving its current marketing strategy. First,
it should identify its target market. This is followed by using the
different techniques mentioned in our recommendation based on the
company's available resources and preference.
Stated above are the guides in the implementation of
recommendations per factor given by the consulting team,
responsibility of implementing the same is solely given to
management of the company.

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