H.

Location Profile

Figure 2: Location map of Royale Grill at National Road Mangaldan, Pangasinan

Royale Grill is located in Rizal Street, Mangaldan renting a space with a floor area of 16

square meters. The building is owned by Alfredo Santos and has the capacity that could

approximately accommodate one rotisserie stand, a small sink and a small comfort room.

The proponents decided to rent the building because the business is just starting-up and

is unable to commit a lot of capital to building. Since the working capital is not enough for this

matter, the company most likely opts to lease. The company will consider the construction of

the building in the future.

The company’s location is strategic because first, it is in the public market which is a

good opportunity for the business to have more exposure in the market. Also, Mangaldan has

only few fast food chains for the consumers to switch from. Second, the company’s suppliers’

locations are also located near the business’ place which can help the company to lessen its

cost expenditures in terms of shipping cost. Lastly, the proponents chose the municipality of
Mangaldan because it is one of the most populous towns in Pangasinan for having more than

106,331 citizens according to the 2015 census of Philippine Statistics Authority which can be

considered as the potential market size of the company.

I. SWOT Analysis

I.1. Strengths

 One of the proponents have the technical capability to produce the product

The major strength of Royal Grill is the technical capability of the proponents which is

considered to be the foundation in establishing the business. Since some of the proponents

have the knowledge and actual experience in producing the proposed products, this gives an

advantage to the company in operating the business.

 First Mover/ Pioneer

The business is the first to officially introduce the roasted turkey and duck business in

Mangaldan based on the proponents’ observation and interviews from some of the roasting

businesses in Mangaldan which includes Bobby’s Roasted, Ivy’s Roasted, Rammel’s Roasted,

Road Roaster’s Roasted, Dong’s Roasted and Renxy’s Roasted last February 3, 2019. There

are no direct competitors since there are no businesses in Mangaldan who offers roasted turkey

and duck, this gives an opportunity for the company to establish its own name. In addition,

being a first-mover has more time than later entrants to perfect processes and systems, and to

accumulate market knowledge.

 Variants of roasted turkey and duck

One of the main strengths of Royale Grill lies in its variants of roasted turkey and duck

such as fiery peperry (spicy), spicy tasty royale (sweet and spicy) and classic. Offering these

new products can distinguish the business from competition because most of the roasted
related businesses offer the same classic product. To maintain this strength, the business

would improve its product quality and its supply chain by contracting suppliers to ensure high

quality.

 Convenient to individuals who passes Mangaldan.

Royale Grill Company is located in front of the market so it is beneficial for those people

who are passing and wanted to buy the products because they will no longer exert more effort in

buying.

I.2. Weaknesses

 Product’s High Price

Compared to other roasted products especially roasted chicken, roasted turkey and duck

may appear costly to customers. This factor can make consumers to buy other roasted that they

could afford thus limiting the market. To make it up with its price, the business will observe the

product’s high quality by identifying contract grower to maintain the good quality of the raw

materials. The company will communicate and negotiate to some turkey and duck suppliers to

ensure the quality and to avoid shortage. The business will also offer per kilograms for those

who can’t afford the whole roasted turkey and duck.

I.3. Opportunities

 Few fast-food chains in Mangaldan.

Having few fast-food chains in the target location will be an opportunity to the business

since consumers have lesser option to buy food. This gives the company to introduce the

proposed products to buyers who are tired of eating the same foods from the same fast food

chains.

 Increasing population in Mangaldan and in nearby municipalities.

Mangaldan population grew from 33,422 in 1960 to 106,331 in 2015 (PhilAtlas, 2019)
Since there is a fast growth of 1.39% population in Mangaldan and in nearby municipalities,

entering a new business in this place will be a good opportunity since there can be a wide range

of target market within these areas. In addition, the greater the population, the more people will

be able to pass the through the company’s location thus increasing the potential buyers.

 The location is known for different grilled products.

Mangaldan is known as for its roasting industry, this situation makes consumers

conclude that the target location is known and good at roasting since the municipalities’ offers

numerous different grilled products, thus making the consumers to buy the proposed product in

the said location (Rivera, 2018).

 Expansion

The company will expand its operation in different nearby municipalities after 5 years of

operation in Mangaldan. This expansion will be a good opportunity to the company to increase

its market share.

I.4. Threats

 Turkeys and ducks are Prone to Diseases

Like chicken products, turkey and duck products are also prone to diseases such as bird

flu which can lead to possible supply shortage and increase to input prices. This may also

create uncertainties to customers to whether buy the product. Since this event is uncontrollable

threat which cannot be prevented by the company, reducing its possible effects must be taken

into consideration. To counter this, the business must establish a strong supplier relationship to

avoid supply shortage by observing good payment discipline that could prompt the supplier to

offer discounts and stable prices in the long run.

Availability of substitute products

 Mangaldan is known for its roasting industry, and there are a huge number of sellers who

offers roasted chicken and pork that have already gained customer loyalty because of their

existence for a long period of time. This threat will be reduced by developing customer relations

through proper communication by informing the customers about the new offers and features of

the products. Better customer relations can make buyers loyal. In addition, the threat of close

substitute could be reduced by making consumer aware of the variants and health benefits of

roasted turkey and duck.

 Customer Preferences

Some buyers prefer products that they normally buy because they have already tried it

and trust is already there. In addition, there are some buyers who do not like to take the risk of

trying new products afraid that it may not suit their preferences. Therefore, since they prefer

sticking to products they used to buy, it is a bit difficult to persuade and encourage them to

purchase the roasted turkey and duck products. To solve this threat, the business will conduct

extensive promotional activities such as food tasting to introduce them the taste of flavored

roasted turkey and duck.