Netong'S: Proposed Marketing Plan
Netong'S: Proposed Marketing Plan
PREPARED BY:
TEAM SOUPERBOWL
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I. INTRODUCTION
A. COMPANY BACKGROUND
In the year 2016, the business opened a branch located in SM Southpoint with
the brand name, Leonito’s by Netong’s. The brand has also opened its branch in Festive
Walk, Iloilo Business Park. Leonito’s also offer the same variety of food including the
Batchoy but added more specialty food in the menu.
Netong’s La Paz Batchoy targets the older segment people ages 60 and above.
In addition, Netong’s also target the tourist segment, ages 20 and above. On the other
hand, the Leonito’s by Netong’s targets the middle-aged people that ages from 35-50.
The price list of the menu ranges from Php 55 to Php 100 in Lapaz Public Market. The
other branches sell a higher price which ranges from Php 60 to Php 150.
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Current Brand Positioning
Netong’s La Paz Batchoy is still the best Batchoy in Iloilo city. Netong’s practices
the old style art of Batchoy making which remains to be authentic than the other
competitors trying to claim the title.
Product Strategy
Moreover, Netong’s offers soy sauce and/or pepper if customers are not satisfied
with the concoction. And to cater those who are health-conscious, customers can
request of not putting MSG.
Place Strategy
Netong’s La Paz Batchoy is currently situated at the La Paz Market, Atria Park
District, Esplanade Iloilo, and Ayala Technohub. Meanwhile, Leonito’s by Netong’s is
located at SM Southpoint. The original branch is located at the heart of the La Paz
Market, where the making of the batchoy was originated, appears to be a typical
carinderia with its exterior design but adheres a restaurant ambiance inside. The
expanded branches and extended brand were positioned in the market to give
convenience, in terms of location, to its consumers. Specifically, Netong’s Atria branch
and Leonito’s by Netong’s was positioned to capture the tourist segment of their target
market since the location is accessible from the hotels near Atria and SM.
Price Strategy
The price list of the menu ranges from Php 55 to Php 100 in Lapaz Public
Market. The other branches sell a higher price which ranges from Php 60 to Php 150,
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specifically, at Netong’s Atria branch due to the high place rentals. Originally, cash
transaction is the mode of payment offered by Netong’s to its customers, however, due
to its expansion in Atria and extension at SM, they offered credit transactions as a
medium of payment. In addition, Netong’s Atria branch offers 10% discounts to their
customers who has a “Turista Card” endorsed by Atria.
Promotions Strategy
Netong’s La Paz Batchoy has been in the industry for over 60 years. Through the
establishment of the business, Netong’s did not focus more on traditional marketing
instead, the business relies on the word-of-mouth communication to further captivate
other customers. The business also engage in event sponsorship and also participate in
promos like discounts. Recently, with the hype of Social Media promotions, Netong’s has
several Facebook pages, focused on a specific branch, where all of the events and
branch openings are posted. Although, Netong’s captured a lot of tourists through blogs
and also postings in Instagram and Twitter of satisfied customers which has increased
its market share.
Meanwhile, Leonito’s by Netong’s which is a new brand has not yet started with
their promotional strategies. The new brand also uses the Facebook page of Netong’s to
entice the loyal customers. Also, Leonito’s by Netong’s has been made popular even
though it is still new because of blogs and reviews in Social Media.
People Strategy
Netong’s La Paz Batchoy utilizes different age groups. In the main branch
located in La Paz Public Market, Netong’s employed the older segment group who are
already experts in Batchoy making. Meanwhile, the other branches of Netong’s La Paz
Batchoy and Leonito’s by Netong’s focus on the younger segment group who have the
background on HRM and other related courses.
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II. STATEMENT OF THE PROBLEM
Because of its prominence in the Ilonggo taste bud after almost 70 years of
existence, Netong’s now aims to strengthen its reputation as one of the heritage brands
in Iloilo city, and be positioned in the minds of its consumers as the real deal—the
authentic La Paz Batchoy of Iloilo. Although, despite its prominence and continuous
efforts to expand its reach, there is an untapped opportunity for Netong’s to integrate its
resources and competencies for it to be able to send a consistent message to its
consumers.
Aside from this, there are several underlying problems or symptoms which need
to be addressed in order to eventually solve the major problem:
Thus, as a brand with good foundation and distinct competencies, the challenge
is to create a fully-integrated marketing plan for Netong’s La Paz Batchoy which could
reinforce it as one of the heritage brands in Iloilo offering the value of authenticity,
through strategic innovations in the business organization’s 4P’s, establishing a strong
and long-term relationship with its customers, and strengthening its overall brand equity.
III. OBJECTIVES
A. GENERAL OBJECTIVE
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Identify a competitive strategy which could effectively differentiate Netong’s La Paz
Batchoy from other local competitors, improve its market position, and eventually
increase its market share.
Incorporate the digital strategy in the implementation of the proposed campaigns
Apply the different marketing strategies and metrics in crafting the promotional strategy
for the proposed marketing plan for Netong’s La Paz Batchoy.
Ensure the continuous and sustainable growth of the business through the different
strategies and campaign mechanisms formulate
Differentiate Netong’s effectively from its competitors and increase its ranking to
number one as compared to its competitors by June 2018.
Reinforce effectively the positioning message of Netong’s to 80% of its loyal
customers by June 2018
Inform deeply 15% of the potential market about the brand with the help of existing
loyalists.
Persuade 15% of aware potential market to experience Netong’s batchoy, and 40%
of existing loyal consumers to take part in building Netong’s brand equity by June
2018.
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IV. SWOT ANALYSIS
SWOT MARKETING IMPLICATIONS
STRENGTHS
Given that they first opened in La Paz, the birth
place of batchoy, Netong’s was able to establish its
brand as a go-to restaurant to eat authentic Netong’s loyal customers are often a
batchoy source for word-of-mouth advertising,
All of their branches are strategically located, and as they recommend the place to other
accessible for customers. people.
After decades of being in the business, Netong’s Netong’s should therefore make use of
has gained loyal customers, especially in their La their existing loyal customers in helping
Paz market branch them to build brand equity
Netong’s Lapaz Batchoy is known in Iloilo as one
of the original and best restaurants to eat batchoy,
and is often recommended to tourists.
WEAKNESSES
The kitchen of the Lapaz market branch
The kitchen of Netong’s Lapaz Market branch is is located outside the restaurant just
located outside the restaurant, making it vulnerable along the market walkway. It can be a
to sanitary problems. problem since it makes the food they’re
They lack consistency in terms of the taste, and selling more vulnerable to possible
the ambience of the different branches. contaminations.
The main product Netong’s is offering, which is The inconsistency of the different
batchoy, is very much available on the market. branches of Netong’s makes one
branch more superior to another in
Their employees, particularly the waiters, lack terms of the customers’ preference.
customer interaction.
OPPORTUNITIES
Netong’s should invest on
Iloilo, particularly Lapaz, is known for its batchoy, advertisements, especially now that
Netong’s main product offering. they’re expanding their business, to
promote the restaurant and its new
They’ve been featured, and are still being featured,
branches like Leonito’s. It can help build
in various programs and write ups as a place to go
awareness for people from both within
to.
and outside Iloilo.
Their branches are located in places with heavy
Netong’s have been featured in different
foot traffic.
travel programs and blogs, and it
SM City, pushing Netong’s to change its name to helped build awareness for the people
Leonito’s, thus its branding as well, in opening a from outside Iloilo, particularly the
branch in SM City Southpoint, avoids the confusion tourists.
of Netong’s being an expensive and fancy
restaurant.
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THREATS
Direct competitors offer the same main product,
batchoy, at a cheaper price.
Netong’s competitors are more visible in such a Deco’s and Ted’s, Netong’s main
way that they have more branches and are more competitors, have a larger market share
commercialized, with some even located outside as they have move branches in and out
Iloilo of Iloilo.
There are emerging restaurants offering batchoy
as their main product since the industry’s barriers
to entry are low
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V. COMPETITIVE ANALYSIS
A. PORTER’S FIVE FORCES ANALYSIS
The business sells their products through their main branch located in La Paz
Public Market and in extended branches situated here in Iloilo City. The menu is
formulated through the company’s preference, where extended branches coordinate with
the main branch to produce products that meets their specifications.
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The basic ingredients needed to create Netong’s signature La Paz Batchoy
includes thin slices of pork, organs, chicharron (pork cracklings), shrimp, vegetables,
chicken stock, chicken breast, beef loin, broth and noodles (miki, bihon, stotanghon or
miswa).These ingredients are obtained from public markets, specifically in La Paz.
The company had not experienced any significant difficulties in obtaining the
ingredients since they personally gather the ingredients needed for food production and
there are several sources available in the market. However, Netong’s believe that there
would be an adverse effect on the cost of the menu due to price fluctuations of the
ingredients present in the market even if there are alternative sources available.
Therefore, their suppliers have low bargaining power against Netong’s.
Competitive Rivalry
For a business operating in the food industry, competition within the industry is
the most significant external force that can affect the business. The food service industry
has experienced steady growth recently. According to the 2014 Annual Survey of
Philippine Business and Industry (ASPBI), there are 28,059 establishments engaged in
accommodation and food service activities. Restaurants and mobile food establishments
account for 76.4 percent. More than forty restaurants in Iloilo city specializes in Filipino-
style cuisine. Most these restaurants ofters the Ilonggo delicacy– the Lapaz Batchoy, on
their menus.
Netong’s has been around since 1948. It is one of the first in Iloilo city to open a
Batchoyan. The competition between its rivals Ted’s Oldtimer Lapaz Batchoy and
Deco’s is aggressive. The three restaurants claim that they serve the original Lapaz
Batchoy (Netong’s is labeled as “The Original Special Lapaz Batchoy”). Consumers
have claimed that although Netong’s may not be the first in the batchoy industry, taste-
wise, they claim it is the best.
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competitors. Price differentiation between the top competitors in the batchoy business is
relatively low ranging from an estimate of ₱10 to 15. Netong’s differentiates itself by
innovating their products and providing its consumers good and accommodating service.
The determining factors that consumers consider are the batchoy’s taste especially its
saltiness.
Between the three restaurants, Ted’s and Deco’s are available for franchise;
Netong’s is the only one which has not offered its business for franchise. Netong’s only
recently expanded its business its first outlet located in Lapaz Market to four branches
located at Atria Park District, Esplanade Iloilo, and Ayala Technohub. A new brand under
Netong’s called Leonito’s by Netong’s is located at SM Southpoint. In terms of brand
recognition on a national scale, Ted’s and Deco’s are highly recognizes with branches
outside Iloilo City and operating in the nation’s capital. Ted’s has 13 branches in Metro
Manila. Deco’s was bought by the foodservice giant Mang Inasal in 2010. This has
allowed Deco’s to expand outside Iloilo City and open branches in Metro Manila. Not
offering the business for franchise can work as an advantage for Netong’s. By not
opening the business for franchise, Netong’s can preserve the quality, taste and
authenticity of the brand.
Netong’s Original Special La Paz Batchoy prides itself as being one of the
original makers of the famous La Paz Batchoy. Being one of the oldest La Paz Batchoy
restaurants in Iloilo city gives Netong’s a competitive advantage in this industry.
Although, La Paz Batchoy is only one of the many dishes belonging in the noodle soup
industry, and it is not that difficult for restaurants to enter this industry as well. Also, the
demand for noodle soup increases during the rainy seasons, which may be an
opportunity for some restaurants which offer Filipino cuisine to diversify their menu, and
include La Paz Batchoy in the dishes that they offer.
In addition, Netong’s, along with its direct competitors, way of preparing their
dishes causes them to achieve economies of scale which allows the restaurant to have
the advantage of being able to cater to more demand at a low cost. This becomes a
barrier to entry because a new entrant will have to try to match the scale to achieve the
same cost advantage as Netong’s and its competitors.
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Threat of Substitution
The noodle soup industry in Iloilo is already saturated. Although the batchoy that
Netong’s offers has a distinct taste that differentiates it from its direct competitors, there
are various noodle soups, such as Pancit Lomi and Pancit Molo, that can serve as
alternatives to Netong’s original La Paz Batchoy. The threat for substitution is therefore
high, considering that, aside from having multiple options available, there is also low
switching cost in opting a different product or brand. This means that the prices of these
alternatives are either lower or only a few pesos higher than that of Netong’s, which
becomes one of the reasons why a consumer would opt for alternatives. Also, these
products are easily accessible since restaurants that specialize in cooking these can be
found almost everywhere. The consumer that would want to switch to a different
alternative will not find it difficult to search for a substitute.
In terms of Netong’s direct competitors, namely Deco’s and Ted’s, the possibility
of consumers shifting to a different brand is high as well. The switching barrier is low in
terms of pricing since the price strategies that these brands observe do not differ much
from each other. Netong’s prices their products around Php55 – Php130. Deco’s
batchoy’s price ranges around Php65– Php120, while Ted’s batchoy has the price range
of Php65 – Php 120. The little difference among these brands’ price strategies creates a
threat for Netong’s, especially because Ted’s and Deco’s have more strategically
located branches as compared to the four branches of Netong’s around Iloilo city.
Primary Segment: Baby boomers aged 30 to 60 years old who belong to the
ABCD income brackets who live in the urban districts of Iloilo City. This age group is
composed primarily of professional who hold important positions in a company. These
are the Ilonggo parents and grandparents and they are profiled as Boomers.
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Secondary Segment: Millennials age 18 to 30 years who belong to the BCD
income brackets who live in the urban districts of Iloilo City. This age group is composed
primarily of college students and young professionals and they are profiled as Millys.
On Consumer Awareness
According to the survey results, 62.9% are aware of the word Netongs while
37.1% not are familiar of the name. When asked which batchoyan the respondent was
aware of, between the top three players in the batchoy industry, more respondents are
aware of Ted’s (94.3%) followed by Deco’s (84.3%) and Netong’s (58.6%).
On Consumer Behavior
Based on the survey, consumers dine in restaurants that serve La Paz Batchoy
at least once a month. The respondents usually go with their friends followed by their
families. On average, respondents spend between ₱ 50 to ₱ 69 and ₱ 90 to ₱ 110 when
they eat La Paz Batchoy.
On Consumer Attitude
The top 3 most important attributes they consider when they dine in restaurants
that serve La Paz Batchoy are the following; the first one is taste and cleanliness of the
food the restaurant serves and the restaurant itself, the second one is customer service
and third is the price and location of the restaurant. The mean of these attributes ranges
from 4.70 to 4.02 (important to very important). This means that Netong’s as a restaurant
must prioritize the cleanliness and the taste of the food that they serve.
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On Top Influencers
In order to determine the respondent’s top influencers, the mean of the level of their
encouragement towards the consumption of La Paz Batchoys was multiplied to the
respondent’s degree of compliance. Based on the result the top 2 influencers are the
respondent’s friends followed by his family and lastly his classmates or colleagues with
mean that ranges from 12.72 to 18.19.
C. CONSUMER PROFILE
BOOMERs
This consumer group is primarily composed of achievers. They put their family
first and value the opinion of people who are close to them. they are goal-oriented and
hardworking. They conduct their own research before they decide to purchase product
or service or purchase from a certain brand. They tend to be loyal to certain brands that
project their personalities. Boomers are known to trust brands that are authentic.
Boomers’ touch points include social media outlets such as Facebook. They
respond to external advertising mediums including flyers, radio advertisements and
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outdoors advertisement such as billboards, banners and posters. They tend to be
employed full-time and are college graduates or pursed a masters and doctorate degree.
Their household income is well above average.
MILLYs
Millys’ touch points include social media outlets such as Facebook, Instagram
and Twitter. They also respond to external advertising mediums flyers and outdoors
advertisement such as billboards, banners and posters. Millys respond more to online
advertisements such as GIFs and short videos. They tend to be college graduates and
are new entrants of the workforce. Their household income is lower than average.
With the campaign name, “Ipamana ang Ginpamana”, the whole initiative will be
divided into two parts. The first part of the whole campaign, primarily addressing only the
older segment who are already aware, and are regular customers of Netong’s, develops
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and reinforces in the minds of the audience the value and experience that a Netong’s
Batchoy makes them realize and feel—the reasons why they patronize the brand. The
second part of the campaign uses its foundation with the older segment to reach the
younger segment.
For this stage, the marketing efforts are directed to the existing consumers of the
brand with the aim to let the consumers be able to put Netong’s on a pedestal,
differentiating it from its competitors. The essential consumer touch points that should
be included on this stage include word-of-mouth and physical and digital
engagements, particularly the use of Facebook as the main social media platform.
This stage makes use of digital marketing and buzz marketing.
As the launch for the whole campaign, an animated video will be released telling
the story behind the paintings inside the Netong’s restaurant in its La Paz and Atria
Branch. The video uses the characters in the paintings, bringing life to each one of them,
and sending a sense of familiarity to the audience who has visited a Netong’s restaurant.
This rich history is what makes the brand different, and authentic.
The video sends the message that Netong is the real author of La Paz batchoy
and let the audience know that only Netong’s can offer them the real deal. The goal of
this campaign is to create buzz, triggering the potential market’s curiosity about the
brand, and give the current market a sense of familiarity towards Netong’s.
Currently, there are two (2) Facebook pages of Netong’s- Netong’s Original
Special La Paz Batchoy and for Leonito’s.
The revamping of the first facebook page of Netong’s is a must since the last
post was on November 2016 and it is more of the construction of Leonito’s. This page
should be updated especially on every event and holidays to promote their business that
cater the needs of the people. This will be same also in Leonito’s page. Also a change in
climate such as rainy seasons can also give an opportunity to them and create pubs that
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says, “hey! Rainy seasons are coming. Let’s fill your cold tummies with our deliciously
hot served batchoy!”
It is also necessary to post their engagement on events such as Dinagyang so that the
Iloilo community notice their participation on the said festival. Events such as graduation,
Father’s Day, Mother’s Day, Valentine’s Day, Christmas Day, Holy Week can
acknowledge the masses that they care for the them by simply knowing that they are
there on such occasions.
One of the problems that Netong’s is facing is the inconsistency of the taste of its
batchoy—sometimes being too salty—because the different cooks of each branch
concocts their batchoys according to their taste buds. Also, it was said that the batchoys
served in the morning tend to be more delicious than the afternoon’s servings. This
hinders the brand from effectively positioning itself in the Ilonggo taste bud, and further
making it difficult for the brand to differentiate itself from its competitors. Therefore it is
recommended that the restaurant creates a standard recipe for its cooks to follow.
This stage focuses on reinforcing the compelling benefits that a Netong’s batchoy
offers. After being able to differentiate the brand from its competitors in the minds of the
target market, the next step is to remind them what they love so much about the brand,
as well as let them embrace the heritage that comes with eating a Netong’s La Paz
Batchoy. This stage prepares the current target market to eventually share the brand
they have learned to love over the years.
Celebrate with Netong’s Photo Contest (Buzz, Digital, & Advocacy Marketing
Strategy)
A photo contest where customers will post their experience in Iloilo Dinagyang, La Paz
day, heritage products, brands, and places will be held. Contestants will be upload their
photos on Facebook, tagging the Facebook page of the brand. The mechanics of the
contest are:
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Upload the photos using the hashtag, #HakosPanublion
Include a creative caption
The most creative post will get a gift certificate or discount coupon from
Leonito’s. This is to encourage the winners to bring their barkada or family since these
are most people whom they are with, based in the results of our survey, and also to
encourage their other barkadas to come, join and experience the brand.This is to
effectively promote and support the heritage sites in Iloilo City, and to remind the
Ilonggos that Netong’s is a heritage and authentic brand for over 69 years, coping and
adapting to changes while still preserving the history within.The ultimate goal of this
campaign is to encourage the Ilonggos to experience Netong’s.
TABU-AN
Tabu-an also offers a variety of Ilonggo authentic dish during the first meeting of the
annual Tabu-an event. It is when they showcase Ilonggo dishes for participants of the
competition.
Iloilo Heritage Month is held every May in conjunction with the National Commission on
Culture & the Arts’ annual celebration and was instituted to raise public awareness of the
rich culture Ilonggos ought to preserve. As part of the Heritage Month Celebration, the
council selects notable and exemplary individuals or institutions that observe and
embody the very ideals of cultural preservation.
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Netong’s sponsorship of the two said events will highlight their vision of positioning
themselves as an Ilonggo authentic dish contributing to the Ilonggo’s Heritage.
Netong’s employees and staff should undergo training to ensure that they are able to
deliver customer satisfaction, and for the brand to be able to establish a good
relationship with their consumers. It is given that Netong’s provides trainings for their
employees when dealing with customer service upon accomplishment of the hiring
process, although, it is proposed for further workshops to reinforce in the minds of the
employees that they are crucial in the operations. Furthermore, the employees will be
able to understand how to prioritize their customers. Netong’s could practice customer
service training, for example the management will show how they are going to deal with
the customers and the employees will then apply it. The management will execute
evaluation of employee’s performances.
Now that the brand has successfully engaged its existing consumers, it is time for
them to tell their experience with the brand to the younger generation, their children or
apos.
For the month of September, Netong’s will recognize and give honor to identified
15 loyal customers from the Boomers. A ceremony will take place to gather these loyal
customers in one events It is the brand’s way of thanking their loyal customers for
sticking with them through the years. They will be give t-shirts that says “Pioneer
Netong’s Brotheren.” This will in turn create brand advocates out of the 15 that have
been given this award.
When I was Your Age Campaign (Advocacy and Content Marketing Strategy)
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of Netong’s, sharing to the younger segment their testimonials or experiences in the
restaurant. The concept of the video is like a grandparent or a parent telling his or her
grandchild stories, specifically their memories with Netong’s. The videos will be released
on Netong’s Facebook page.
Netong’s could be able to gain more customers through bloggers and their write
ups regarding the restaurant. With regards to that, the Ilonggo Bloggers Inc. where they
are locally from Iloilo and are familiar with the Batchoy history. Moreover, these bloggers
are still in their 20’s-30’s and as a result, it would be able to capture the younger
segment since they both share the same taste and preferences in food.
Netong’s is known for over 60 years and most of the loyal customers are the
older segment. In order to show to the younger generation how Batchoy has been part of
their grandparents’ lives. Netong’s could have the “Buy One Take One” Batchoy. This
promo can be availed by a grandparent bringing his/her grandchild. . Through this
“Isama Mo na Si Apo” campaign, the youth will be able to know the heritage brand of the
Ilonggos and make Batchoy as part of their lives as well.
D. HULAG (PERSUASION)
This stage aims convince the new segment, to visit and make the actual
purchase of Netong’s products. Aside from that, the older market segment are now
ready to represent the brand through the brand community that will be established.
Many tourists visit Iloilo City during the Dinagyang season. Batchoy has never
been out of a first timer’s bucketlist whenever they visit the city. To comply with the high
demand of Batchoy, Netong’s could offer the “Unlimited Batchoy” for only Php 200. This
will be enticing to customers especially to those not from Iloilo since it is part of their
must try food. And with that, it will also build up the image of Ilonggos as being
hospitable because of the openness of Netong’s to release the unlimited food.
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Netong’s aspires to unite their customers and build its own brand community
which will be called BROTHeren who are composed of individuals having age variations.
The brand community will be established once these customers start to connect and
identify with a specific product, such as Netong’s La Paz Batchoy. Moreover, the brand
community will be composed of individuals who value engagements and lasting
relationships. BROTHers shall ensure that it will remain to its vision of expanding their
reach while adding value to other factors of the consumers behaviour, such as
engagement in conversations and improvement of Netong’s relationship with its
customers. It will be the venue for the batchoy enthusiast to express their views and
feelings and for Netong’s to connect with the individuals who share the same interests
as them. It will also serve as an informative resource for the customers to connect and
find out answers to questions which concern Netong’s product offerings and promotions.
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travelers a map of the city’s tourist spots, emphasizing the La Paz branch of Netong’s to
encourage them to explore Iloilo city.
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X. BUDGET
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or organizations to sponsor events
specific events
Flyers Printing and distribution 4,500
Standardized Good customer feedbacks
Recipe
Honoring Loyalists Buying and printing shirts Increase in sales
Choosing loyalists Number of store visitors 20,000
Awarding/ Honoring them
Objective: When I was your Preparation for shooting Social media engagement
age campaign
Shooting and editing (Views, Shares, Likes and 12,000
Comments)
Inform Release to social media 4,500
Social media reach
deeply 15% of the Boosting the video
potential market
Blogger's Send letter to bloggers Website traffic
about the brand
sponsorship 10,000
with the help of Partnering with them to feature
existing loyalists. the products
Sales Promos Create pubs for the sales Actual sales
promotion
Objective: Social media engagements
Release pubs on social media and impressions
sites
Persuade
Brand Community Interaction through social Social media engagements
15% of aware media page and impressions
potential market to
experience
Netong’s batchoy,
and 40% of
existing loyal
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consumers to take
part in building
Netong’s brand
equity by June
2018.
GRAND TOTAL P 92,000
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XI. APPENDIX
ANNEX A. PESTLE ANALYSIS
POLITICAL
This is just in relation to ensuring the product quality in order to guarantee safety for the
customer in any Netong’s branch. This is a threat for them to lookout for especially in handling
tools in the workplace and even on the restaurant itself.
This is in relation to sanitary practices that the restaurant should ensure especially on the
ingredients that may affect the health of any customer. This is a threat in which they need to
conduct proper food handling and secure every ingredient that they use such as monitoring the
freshness and the life span of the ingredients.
In case of defective products, Netong’s will be held liable if they are found out to be at fault.
Contingency plan for this matter would be either a strength and weakness of the brand
depending on the degree of their internal preparation
A threat to ensure that all advertising must be ethical and must only be what the business is and
not any unnecessary claims
The customers have the right to complain that is why it is a threat for Netong’s for them to
establish great customer service, effective and efficient workers and quality products to offer.
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This act is to ensure that the products passed quality standards to protect the customers.
Passing quality standards reveals what kind of product that the business offers. That is why this
an opportunity of the brand to leverage on food quality when internal and operational control has
already been done.
Rice policy
There is a ban on rice importation during harvest season in order to buy the product of
the farmers. Economists expect that this could lead into higher price rice and shortages. This is
both a threat and opportunity for the brand. Threat is on their products with rice since they may
adjust the price to drive profits. Opportunity would be on their main products; batchoy, miswa,
sotanghon, etc which does not require to be accompanied by rice.
ECONOMIC
Dutertenomics
Inflation rate
Inflation has been high in this administration compared to the previous. The current
inflation rate is 3.4% which is comparably higher to the 1.6% in the Aquino administration.
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Netong’s need to lookout on how they could lower their cost in order to have profits or find a
way in which they could offer their products on higher price by creating value.
This could provide profitable relationship between their suppliers and the brand while
helping those in the agricultural sector sell their products. This could lower costs and ensure
that the availability of their supply.
With Netong’s four branches: La Paz Market, Atria Park District, Esplanade Iloilo, and
Ayala Technohub and the recent new brand at SM Southpoint under Netong’s, called Leonito’s
by Netong’s, Megaworld Festive Walk which is still undergoing different phases in construction
could be another area for expansion of Netong’s. This is to take part of the development in
Mandurriao area which is a great potential market especially because of their impressive
infrastructures and variety of shops and restaurants.
SOCIOCULTURAL
In a media release, DOT-6 Regional Director Helen Catalbas said that Korea, China, and
Taiwan are also the top three foreign tourist markets for Region-6 last year[CITATION Leo17 \n
\l 1033 ]. These foreigners are potential market for Netong’s since most of them are staying for
long period of time for business and study.
Health-conscious customers
30
According to Pulse Asia Survey, Filipinos are getting health-conscious as an urgent concern on
their lives[ CITATION Jod16 \l 1033 ]. Staying healthy is a main concern since 2012. This
makes them conscious of what they eat from high-calorie meals to healthy ones like vegetables
and fruits. This is both a threat and an opportunity for the brand. The threat comes from those
market who would rather choose to go on a restaurant offering healthier foods compared to the
high-carb meals from Netong’s. This is a possible area to which Netong’s could improve like
offering variety of other Filipino cuisines which are healthier than their present menu aside from
their main product, batchoy.
Lifestyle-on the go
Filipinos want food, beverage and cooking choices to be fast, easy and convenient[ CITATION
Kan13 \l 1033 ]. With the nature of the business, it would be difficult to address such qualities.
However, there is just a need to compensate this with short serving time, effective employees
and systematic operational activities.
Festivals
It is revealed that the peak season for Batchoy of the brand is during Dinagyang. That is why
annual preparation for such activity could be both a threat and opportunity for the brand. It could
harm the brand if the some branches would not be ready for the surge of customers during this
period while it is a good opportunity to maximize profits during this time.
Legal Factors
There is also a need for updating and codifying sanitary laws to ensure that they are in keeping
with the advances in the standards of health and sanitation to provide a handy reference guide
for their implementation and enforcement.
Standards for drinking water and their bacteriological and chemical examinations, together with
the evaluation of results, shall conform to the criteria set by the Philippine National Standards
for Drinking Water. The treatment of water to render it safe for drinking, and the disinfection of
31
contaminated water sources, together with their distribution shall be in accordance with the
procedures prescribed by the DOH.
The sanitation inspectors of the component LGUs of the Province shall conduct periodic on-the-
spot inspections of the facilities of water suppliers or haulers.
Spaces for food service shall not be used as living or sleeping quarters. Clothing or personal
effects shall be kept away therefrom and no animal or live fowl shall be allowed in such spaces.
Persons not directly connected with food preparation and serving shall not be allowed nor
handle any food preparation.
In the La Paz branch, this should be strictly implemented by the business since it is
within the wet market. The cooking area is exposed to the market that can triggered the
sanitation of the business. Without compliance of the ordinance can lead to the closing of the
establishment.
The existing provisions of RA 7394, commonly known as the consumer act of the
Philippines, also provide both opportunities and threats for the business.
(a) To develop and provide safety and quality standards for consumer products, including
performance or use-oriented standards, codes of practice and methods of tests. (htt1)
Art. 6. Implementing Agencies. - The provisions of this Article and its implementing rules and
regulations shall be enforced by:
(a) The Department of Health with respect to food, drugs, cosmetics, devices and substances;
(b) The Department of Agriculture with respect to products related to agriculture; and
(c) The Department of Trade and Industry with respect to other consumer products not specified
above.
32
These articles imply that the government, specifically the Department of Trade and Industry
(DTI) may interfere in some of the company policies. These means that the business must
maintain a good relationship with these government departments and make the service as
consumer-friendly as possible.
Art. 110. False, Deceptive or Misleading Advertisement. - It shall be unlawful for any person to
disseminate or to cause the dissemination of any false, deceptive or misleading advertisement
by Philippine mail or in commerce by print, radio, television, outdoor advertisement or other
medium for the purpose of inducing or which is likely to induce directly or indirectly the purchase
of consumer products or services.
These are both threats since if the company cannot deliver the promised value proposition to
the customers it may smut the image of the company. Furthermore, trust from the customer is
then compromised and the company cannot capture value from the customers.
Generally, this republic act is the only existing Legal factor that affects Netong’s operations
since there are not much bills and laws that are directly related in the public storage industry.
Although many of the provisions in RA 7394 can have implications to the operations of Netong’s
the ones mentioned above are the important articles that needed the company’s attention.
Technological Factors
The emergence of technology has introduced the society a more efficient and convenient way
on getting things done. The advancement of technology can trigger every business
establishment. Without adapting the digital age, they will slowly generate growth then can lead
to the loss of business.
Computers also contributed a great part in the advancements in this macro environment sector.
Computers are have made a great impact in virtually in all areas of an individual’s life. It
increased the accuracy and efficiency of daily work activities. It also drastically brought down
the cost of the business and its operations. The company greatly benefits this development for
the reason that the Netong’s is computer operated and is greatly dependent to it. Thus, the
company requires continuous improvement in the business operating systems.
Disturbances in the system cannot be avoided. The drastic increase in the number of hackers
and hacking systems are the main threats to the company. Report shows that cyber-crime is
33
now on the rise. According to the Verizon’s 2014 Data Breach Investigations Report (DBIR),
there are more than 63,000 security incidents during the year. Of these 63,000 incidents, just
1,367 were confirmed data breaches affecting 95 countries. The report compiled by Verizon’s
security arm found that 97% of the crimes fall into nine categories of security breaches,
including point sales intrusions, web app attacks, cyber espionage, insider misuse, card
skimmers, DoS attacks, crimeware, miscellaneous errors and physical theft. As a result, the
company system must ensure that the system must be maintained and updated from time to
time to guarantee the steady operations of the establishment.
Natural Environments
A major concern is the natural environmental factors that will affect the business. Due to
the uncontrollable environmental forces, the business should be responsive to every natural
occurrence and utilize information of some forecasted natural events to enhance business’s
preparedness.
Nowadays, the country is facing various calamities, such as typhoons and earthquakes,
and these can greatly affect the supplies of raw materials and resources of the business. The
resources are very important to Filipinos in the everyday life. It will not only the business
competes for the resources but also the masses. And the low stock of supplies will lead to the
increase of prices. These will burden the business since they will incur more costs.
Philippines is situated in the Pacific and is considered as the most vulnerable to tropical
cyclones. It has at least 20 typhoons per year, 5 of which may considered as destructive
according to PAG-ASA. Last 2013, the country was hit by one of the strongest tropical cyclone
even recorded named Typhoon Haiyan and a killing of at least 6,300 people. Albeit having
prepared for the calamity in comparison to previous disasters, political factors like the lack of a
strong central government and provincial governors have virtual autonomy in dealing with local
problems exist.
34
ANNEX B. REFERENCES
References
Gavilan, J. (2016, January 12). Health is Filipinos' top personal concern for 3 years now – Pulse
Asia. Retrieved from Rappler: http://www.rappler.com/nation/118663-top-concerns-filipinos-
pulse-asia-survey-december-2015
Pineda, L. (2016, June 9). Increase in tourism activities means better services - See more at:
http://news.pia.gov.ph/article/view/2421465448272/#sthash.k3cljAWQ.dpuf. Retrieved from
GOV.PH: http://news.pia.gov.ph/article/view/2421465448272/
Pineda, L. (2017, January 30). Koreans, Chinese, Taiwanese – WV’s top spenders. Retrieved
from GOV.PH: http://news.pia.gov.ph/article/view/2421485744704/koreans-chinese-taiwanese-
wv-s-top-spenders
Worldpanel, K. (2013, September 6). 4 factors explain Filipino buying behavior. Retrieved from
Rappler: http://www.rappler.com/business/38219-4-factors-explain-filipino-buying-behavior
35
ANNEX C. SURVEY QUESTIONNAIRE
Good day! We are marketing students from the University of the Philippines Visayas College of
Management. We are conducting a survey on the Consumption Behavior of Individuals towards
the Ilonggo Delicacy, La Paz Batchoy. There are no right or wrong answers. Your honesty will
be greatly appreciated. Rest assured, the information obtained will be strictly kept confidential.
Thank you very much!
Screening Questions
1. Have you been/visited Iloilo City for the past two years?
a. Yes
b. No
2. Do you eat in restaurants that serve Ilonggo delicacies?
a. Yes
b. No
3. Do you eat La Paz Batchoy?
a. Yes
b. No
____________________________________________________________________________
36
I go alone
Others: _____
4. What attributes in a restaurant do you value most? (choose 3)
Ambiance
Price
Quality of Food
Customer Service
Presentation of Food
Different Modes of Payment
Having multiple dishes to choose from
Cleanliness (restaurant & food)
Customization
5. What are the reasons why you eat in restaurants that serve La Paz Batchoy?
To experience/ taste Ilonggo delicacies
To satisfy craving
Comfort food
Affordable
Convenient
Go to Food during the rainy/ cold season
Others: _________
6. Where do you usually buy La Paz Batchoy
Commercial Areas (e.g. malls)
Public markets
Karenderias
Others:___________
7. On average, how much do you spend when you eat La Paz Batchoy?
₱ 50- ₱ 69
₱ 70- ₱ 89
₱ 90- ₱ 110
More than ₱ 110
37
8. What is your most favorite part of La Paz Batchoy?
Broth
Thin strips of Pork
Slices of Beef loin
Shredded Chicken Breast
Organs (liver, kidneys, intestine)
Bone Marrow
Chicharon (Pork Cracklings)
Vegetables
Noodles
Others: ______
9. Below is a list of attributes related to restaurants that serve La Paz Batchoy. Please
indicate the importance of each factor and rate them from 1 to 5 (1= least important, 5=
very important).
38
10. Below are statements regarding restaurants that serve La Paz Batchoy. Please indicate
your level of agreement for each statemen by rating them from 1 to 5 (1= strongly
disagree, 5= strongly agree).
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
1 2 3 4 5
I prefer
batchoyans that
has a good
ambiance (has
great music, with
a/c, beautiful
interior design)
I prefer to buy
batchoy that are
cheaper
I prefer to eat at
batchoyans with
friendly,
accommodating
and hospitable
staff
I prefer
batchoyans that
serve food that
looks appetizing
I prefer
batchoyans that
has different
modes of
payment
I prefer
batchoyans that
serve a wide
variety of food
aside from
batchoy
I prefer
batchoyans that
39
are near my
home, school or
workplace
I prefer
batchoyans that
serve distinct
and delicious
batchoy
I prefer
batchoyans that
observe sanitary
procedures in
preparing the
meals and in the
restaurant, itself
I prefer to eat la
paz batchoy that
give me the
option to
customize my
meal (e.g. more
chicharron, no
msg)
11. Who influences/ 12. From your answers in 13. Based on your
convinces you to eat # 10, what do these answers in # 10, will
La Paz Batchoy? influencers want you you comply with their
(Check all that to do with regard to wishes? Please your
applies). your consumption of by choosing your level
La Paz batchoy? of compliance. (1= will
(click N/A if it is not definitely not comply,
applicable) 5= will definitely
comply) Click N/A if it
4= stop consumption is not applicable.
3= decrease level of 5= will definitely
consumption comply
2= retain consumption 4= will comply
1= increase level of 3= neither will or will
consumption not comply
2= will not comply
1= will definitely
comply
Family
40
Friends
Siblings
Classmates/ colleagues
Social Media
Online reviews & Ratings
Website
Travel & Food Blogs
Celebrities/ online
Personalities
Others
The following are the statements regarding the factors that can hinder or can promote your
consumption of la paz batchoy. Please indicate your level of agreement by using the scale:
1- strongly disagree
2- disagree
3-neutral
4- agree
5- strongly agree
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
14. I eat La Paz
Batchoy because
it is affordable.
41
17. I do not consume
batchoy because
it is time
consuming.
18. I am hesitant to
consume batchoy
because has
artificial
seasoning.
19. I am confident that
I can consume la
paz batchoy
anytime,
anywhere.
The following questions are regarding your control over factors that can facilitate or hinder your
consumption la paz batchoy. Please check the box that corresponds to your level of control.
No Strongly
Control Control
20. Financial
Resouces
25. Which of the following restaurants that serve La Paz Batchoy are you aware of? Check
all that applies.
Benoy’s
Deco’s
Lola Di Batchoy
Ted’s
Netong’s
Casa Ilongga
42
Others: ___________
26. What do you like the most about these restaurants?
_______________________________________________________________
27. What are the things you like the least about these restaurants?
28. Are you aware of Netong’s Original Special La Paz Batchoy?
Yes
No
29. How did you find out about Netong’s
Social Media
Word of Mouth
Print Advertisement
Others: _______
30. What comes to mind when you hear the name Netong’s?
________________________________________________________
31. Have you been to Netong’s?
Yes
No
32. Which branches have you visited? (Check all that applies).
La Paz Market
Atria Park District
Esplanade Iloilo
Ayala Technohub
Others: ____________
33. What do you like the most about Netong’s?
____________________________________________________________
34. What do you like least about Netong’s?
____________________________________________________________
35. Which social media outlets do you actively engage in? (Choose top 3).
Facebook
Instagram
Twitter
43
Snapchat
Youtube
Tumblr
Pinterest
Others: _______
36. Which promotional materials usually catch your attention? (Choose top 3).
Flyers
Trade fairs
Radio Ads
Magazine Ads
Outdoor Ads (Posters, banners, billboards)
Social Media Ads
Newspaper Ads
Others: ______________
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
1 2 3 4 5
37. I am a creative
person
38. I value local
products.
39. I do not like food
that has artificial
ingredients.
40. I am an achiever
41. I am goal-oriented
42. I put my family
first over my work
43. I do my own
research before
buying a product.
44. I value the
opinions of people
close to me.
44
45. I am up-to-date
and follow the
latest trend.
46. I am loyal to
certain brands.
47. I prefer brands
that are authentic.
Demographics
Gender:
Male
Female
Status:
Single
Married
Widower/ Separated
Elementary
High School
College Undergraduate
College Graduate
Vocational Course Graduate
Masters
Doctorate
Employment Status:
45
Annual Household Income
ANNEX D. RESULTS
Summary of Results
46
restaurants that serve La Paz month week
Attributes Mean
Cleanliness 1.5
Ingredients Mean
47
Broth (Soup) 1.45
Noodles 1.41
Chicharon 1.30
Below are statements regarding restaurants that serve La Paz Batchoy. Please indicate
your level of agreement for each statemen by rating them from 1 to 5 (1= strongly
disagree, 5= strongly agree). (Top 3)
Statements Mean
48
12.72
Friends 3.00 4.24
15.05
Family 3.21 4.69
18.19
marketing
stimuli that may
influence your Classmates/Collea
3.63 5.01
decision in gues
consuming LA
Paz Batchoy
Please indicate
49
strongly agree).
Psychographic
Age Bracket Frequency Percentage (%)
Attributes
Value Local
39 78.0
Products
Value Authentic
18 to 30 37 74.0
Brands
Loyal to Certain
36 72.0
Brands
Goal-oriented 18 90
Conduct Own
Research
18 90
before making
decisions
31 to 60
Value opinion of
18 90
others
Value Authentic
16 80
Brands
50