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Business combination lecture number one

Accountancy (Far Eastern University)

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FAR EASTERN UNIVERSITY

INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Production and Operations

Improvement Plan

BME1101 – Section 31
Production and Operations Management
AY 2020-2021 Second Term

SUBMITTED BY:

Arellano, Gwyneth Moira S.

Calungsod, Patrick Joshua C.
Dacanay, Angelea D.
Leonor, Angelica Coleen D.
Palmares, Christine B.
Rabe, Ma. Donna Lynne F.
Rosetes, Katrina A.
Vargas, Earl George C.

SUBMITTED TO:

Mr. Mark J. Santiago

May 2021

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TABLE OF CONTENTS

I. Summary of Revisions 3
II. Overview of the Business 3
CHAPTER 1 Introduction to Operations Management 3
a. Company Name, Background/History
b. Nature
c. Management Team and Industry

C HAPTER 2 Competitiveness, Strategy, and Productivity 5

a. Mission-Vision
b. Goals
c. Organizational Strategies
d. Tactics
e. SWOT

CHAPTER 3 Forecasting 11
a. Tools

CHAPTER 4 Product and Service Design 12

a. Product design and redesign

CHAPTER 5 Strategic Capacity Planning for Products and Services 32

a. Capacity Requirements and Tools
b. Strategies
c. Demand management strategies

III. Introduction 35

IV. Operational Activities 36

V. Description of Supply Chain 37

VI. Recommendation 38

VII. References 40

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I. SUMMARY OF REVISIONS
Added a few clarifications on the Recommendation part as suggested by the
panelists for further understanding.

II. OVERVIEW OF THE BUSINESS

CHAPTER 1 Introduction to Operations Management

a. Bounty Fresh Food Inc. Background and History

Bounty Fresh Food Inc. started in the 1980’s when the Chen Family in Sta.
Maria Bulacan put up a one layer house and loaded the first 5,000 heads of chicken
to begin with egg production. Broiler integration started in 1995 and began to fully
operate in 2008 that includes growing broilers, raising layers, and processing the
raw chicken up to developing various chicken products. From then on, the business
grew to be the second largest poultry integrator in the country who also operates
the largest-company owned Broiler Complex in the Philippines. They were also the
first company in the country to implement the single-stage hatchery incubation
system in which the eggs are incubated together based on their development stage.
By 2002, the company started vacuum packaging for its chicken products and was
the first company to do so in the local market. Bounty has a ten percent share of the
market around that time. The company owns a dressing plant in Pulilan, Bulacan
and recently opened another in Hermosa, Bataan.

In 1997, in order to operate in various branches across the Philippines and

to cater more consumers, Bounty Agro Ventures Inc. was integrated. Each of the
branches engages with business partners for toll dressing, toll feed milling, toll
hatching, contract breeding, and contract growing. They are also provided with
supervision, training, technical assistance and transfer of technology to assure the
product consistency and quality. In 2008, the company started its most ambitious
project yet and ventured into chicken rotisserie outlets with processed meat
products such as dressed chicken, roasted pork belly, and other derivative products
which led to the birth of Chooks-to-Go. In a span of two years of aggressive
promotional efforts, the brand was able to stabilize to near industry-level average
volume per store. The Concurrent Chairman of the Board and Founder, Tennyson
Chen, was named as the Entrepreneur of the Year 2010 and Master Entrepreneur in
Ernst & Young Entrepreneur of the Year Awards in 2010. The company was also
tagged for paving the way for the poultry industry’s expansion as well as the
premier poultry integrator in the country in 2012.

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After taking several experimental runs in 2012, Bounty is also the first and
only poultry integrator in the country raising Zero Antibiotics chicken through the
No Antibiotics Ever (NAE) Technology which is a huge step in preventing the
global threat of Antimicrobial resistance (AMR). Bounty took on the challenge of
becoming part of the solution instead of being a problem. Through this innovative
process, consumers are assured that their chicken has always been healthy and
never been sick as they grew in a clean and comfortable environment while taking
a vegetarian diet and zero antibiotics throughout their lifetime.

b. Nature of Bounty Fresh Food Inc.

Bounty Fresh Chicken is the brand under Bounty Fresh Food Inc. and
Bounty Agro Ventures Inc. They are known to supply dressed chickens, live
chickens, and processed chicken products to various restaurants, hotels,
supermarkets, and institutional food companies across the country. These include
tray sealed “Meals in Minutes”, dressed chickens in vacuum packs, ULMA
packaging, and “Cut-Ups” in vacuum. Bounty Fresh also offers products of
processed meats such as Disney-branded nuggets, Chicken puffs, and heat-and-eat
products. A few products also have Halal certification that ensures the quality and
features of the product according to the rules established by the Islamic Council.
The company also offers different egg products such as Special Vitamin E eggs,
Special Organic Selenium eggs, Special Nutri-filled eggs and a lot more variants.
Lastly, they also provide not just poultry products but different types and cuts of
pork and beef as well. In 2017, Bounty started the commercial production of No
Antibiotics Ever Chicken.

One of their most notable products is their line of roasted chicken under
Chooks-to-Go. It is considered as the ruling market leader in the rotisserie business
with close to 1,000 branches nationwide. To differentiate the product among its
competitors, it is labeled as the first and only roasted chicken that can be enjoyed
without the use of sauce, thus the tagline, “Masarap kahit walang sauce”. Chooks-
to-Go is also oven roasted instead of using the traditional charcoal roasting thus,
the cooking process is cleaner and easier to operate and maintain. Due to this, it
catered to the growing market segment of limited time of food preparation by the
busy consumers and the Filipino’s love for family gatherings.

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c. Management Team and Industry

The current Chairman and Founder of Bounty Fresh Food Inc. is Tennyson
Chen followed by the President and General manager Ronald R. Macarinas. Next
is Jose R. Chanyungco who is the Senior Vice President and Chief Finance Officer
followed by Dr. Erasmus J. Padres who is also a Senior Vice President and in charge
of Animal Health and Feed Mill Operations. Next is Mark L. Trias who is the Vice
President and in charge of National Sales followed by Nedo L. Sasing who is also
a Vice President and in charge of HR, Legal, and Corporate Administration. Other
members of the Management Committee are the Sports and Marketing Director,
Assistant Vice Presidents for Finance, Information System, Compliance, Vice
Presidents for South and North Luzon operations, Metro Manila and Central Luzon
operations, Visayas operations, and Mindanao operations. Next is Bounty Fresh
Food Inc. belongs to the broiler industry, poultry farming, agriculture, animals and
livestock, food processing, and poultry and livestock operations.

CHAPTER 2 Competitiveness, Strategy, and Productivity

a. Bounty Fresh Food Inc. Mission and Vision

VISION

We do more to bring happiness to families through life’s bounty.

MISSION

We make food exciting. Everyday. Everywhere!

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b. Goals

1. The company’s ultimate goal is to provide the best quality poultry products that
will satisfy the customers and to create long-term relationships with them.
2. To be the preferred take-out store of freshly cooked food serviced by highly
motivated and well-trained people.

c. Organization Strategies

1. Branding Strategy - Bounty Fresh sets the key brand message as the “One of the
largest broiler integrators in the country” and the first to raise “Zero Antibiotics
Chicken”. The company sets its objectives to increase the brand awareness and
strengthen its brand image in the market.
2. Strategic Outsourcing - Bounty Fresh engages with contract growing with
independent poultry farmers to ensure the efficiency in raising high quality
chickens. Many of the contract growers have been collaborating with the company
for decades which earns them a badge for being a partner in success.
3. Differentiation Strategy: Newness and Safety - Bounty Fresh differentiates their
products among other competitors by offering the first and only roasted chicken
that can be enjoyed without the use of sauce which is the Chooks-to-Go. Some
products offered by Bounty Fresh are also Halal certified and Zero Antibiotic
Chicken to ensure the quality of the products.
4. Quality Control - To ensure that the product quality is consistent across all the
franchise stores nationwide, they provide supervision, training, technical
assistance, and transfer of technology to their business partners and contract
growers. Their store personnel are trained and constantly evaluated to maintain the
high standards of operation services. The company also established the BAVI
Academy that provides in-house training for outlet personnel to keep the quality at
the desired level.
5. Pricing Methodology - Bounty offers affordable poultry products to the market
and helps the busy consumers to have a meal without spending too much time for
preparation.
6. Integration Strategy - Bounty has control on its products’ supply chain wherein
the company is integrated in both the significant parts of its production and selling
processes starting from contract growing up to toll dressing. They make their own
products using their properties and equipment then they sell these with their
company retail stores.
7. Intensive Development Methodology – Bounty’s concentrated procedures for
development uphold the company’s capacity to keep up its solid situation in the

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market. With a high pace of advancement and accentuation on greatness in the item
plan, Bounty was able to achieve a huge success.

d. Tactics

1. Bounty Fresh Food Inc. introduces new and different types of chicken products that
the consumers can choose from such as Beef Stroganoff, Beef Sukiyaki, and New
York Steak. They also offer processed meats such as Chicken Puffs and heat-and-
eat products. For Chooks-to-Go, they offer oven roasted chicken in pepper roast
and sweet flavors.
2. Bounty Fresh Food Inc. has their own dressing plants where they breed and farm
their own chicken then sells it to Bounty Fresh retail stores.
3. Bounty engages with their in-store customers by cutting the meat products
depending on their own preference and needs.
4. Bounty does not just sell products in stores but provides the consumers the best in
class quality and healthy meats.
5. Bounty’s production has credible and reliable contract growers to ensure that the
chickens are growing in a stress-free environment and have a vegetarian diet.
6. Bounty works and supplies products with different hotels, restaurants,
supermarkets, and institutional food companies across the country.
7. Bounty is targeting everybody as meat products are the preferred thing of people
regardless of social status.

e. SWOT

Bounty Fresh food Inc. SWOT Analysis

S W
STRENGTHS WEAKNESSES

● Bounty Fresh has already established a ● Some Bounty Fresh products can lean
brand loyalty among consumers which on the expensive side in which low-
resulted in them being one of the most income earners may not afford.
valuable brands. ● The Broiler industry and poultry
● Bounty Fresh products are sold and farming business has a limited
available in all leading supermarkets flexibility in pricing.

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nationwide which makes their product ● There is a significant amount of

accessible for consumers. competition in the market among the
● Bounty Fresh is also the first and only poultry industry.
poultry integrator in the country raising ● Bounty Fresh products are usually sold
Zero Antibiotics chicken through the No in leading supermarkets which limits
Antibiotics Ever (NAE) Technology to the reach of more potential and possible
prevent the spread of Antimicrobial consumers since some of them would
resistance (AMR). rather prefer to buy in wet markets than
● Some products have a Halal Certification to travel longer to the supermarkets.
according to the rules established by the ● Bounty Fresh uses a traditional way of
Islamic Council. advertising rather than promoting in
● Bounty Fresh offers a wide array of social media or investing in more ways
products to which are all surely high of promotion.
quality and healthy for consumers. ● For some consumers, they might think
● The first company in the county to that Bounty Fresh only has a limited
implement the single-stage hatchery product line and does not offer what
incubation system. they wanted such as fish products.
● Bounty Fresh has the latest commercial
poultry farming hatchery, equipment,
tools, and machines that will help them
raise and produce organic eggs in
commercial quantities with no-stress.
● Bounty Fresh started vacuum packaging
for its chicken products and was the first
company to do so in the local market.
● Bounty Fresh products are endorsed by
famous personalities such as Lea Salonga,
Alden Richards, Alex Gonzaga, and Vic
Sotto who are known to many.

O T
OPPORTUNITIES THREATS

● Continued expansion for online sales via ● Changes and unfavorable government
The Meat Market by Holly Farms—a policies can impact the business.
subsidy of Bounty Fresh Food Inc. ● Global economic downturn that can
negatively impact household spending.

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● Bounty Fresh may seek to establish ● Avian Influenza or Bird Flu outbreaks
additional locations to accommodate a and other diseases and parasites is a
large number of consumers. huge threat in poultry business as it may
● Higher demands for chicken among affect the sales of poultry products.
households. ● Bad weather and floody days can affect
● Bounty Fresh only hires qualified people and destroy the dressing plant and
and develops products until it becomes the feeding mills.
best quality and through this, the company ● Competitors like Magnolia can offer
can discover more new things and develop similar products quickly.
proprietary products. ● Poultry products sold in wet markets are
● Opportunities to build more dressing more accessible for consumers
plants in the different regions of the therefore, small poultry business can be
country. a threat for the company.
● Possible development of wholesale ● Insurance costs are gradually increasing
distribution relationships with other due to economic factors.
brands. ● The pandemic is slowing down the sales
● Extended partnerships with hotels and of Bounty Fresh products because of the
restaurants that cannot operate without economic downturn.
daily supplies of eggs and poultry
products.

SO WO
STRATEGIES STRATEGIES

● Bounty Fresh must continually train all ● Bounty Fresh should study how they
their staff and employees even though they can lower the price as much as possible
are already much qualified to make sure without lowering the quality because
that they are producing the top-notch this can help improve the sales of the
quality of products. products.
● Bounty Fresh should maintain their loyal ● Bounty Fresh should broaden their
consumers' satisfaction and must always product line because seeing what more
exceed their expectations as this will help they can offer can eventually make
them to become a favorite brand of choice. consumers interested about the brand.
● Bounty Fresh should maintain or sustain ● With a traditional way of advertising,
raising Zero Antibiotics chicken to the company should extend the
prevent the spread of Antimicrobial promotion of products or become more
Resistance (AMR) that will help uphold comfortable with the method of social

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the good dignity of the company in the media as a promotion so that Bounty
eyes of consumers. Fresh also incorporates young people as
● Due to the high technology that Bounty potential consumers who are known to
Fresh has, they should establish more be more inclined to eat chicken.
infrastructure incorporating their single- ● The fact that some Bounty Fresh
stage hatchery incubation system with a products can roll on the expensive side,
dressing plant in strategic locations in the they should also make an added product
country. that is affordable for low-income
● With the Halal certification that Bounty earners, because their sales and their
Fresh has, they must uphold it or maintain consumers will grow even more if there
it for that opportunity to reach Muslim is no selection of social class in terms of
communities as their potential consumers the price of their product.
too. ● Bounty Fresh has already a lot of
● Bounty Fresh should try to broaden their products to offer to their consumers but
product lines as they might discover some they can always add more to broaden
products that only they can offer in the their product line hence, they can also
market. venture to offering products such as fish
and other frozen goods.

ST WT
STRATEGIES STRATEGIES

● As the competition in the market is getting ● Bounty Fresh should continue to

more heated, Bounty Fresh should do explore and study on how they can
something and offer products the further improve their products and what
competitors do not have. new technology and methods can be
● As Bounty Fresh started vacuum applied to their production and
packaging for its chicken products, the operation because otherwise, its
company should also make alternative competitors can meet and outperform
packaging that is eco-friendly considering the capacity they have.
vacuum packaging is a plastic film ● Bounty Fresh limits the reach of more
package that is highly equivalent to its potential and possible consumers
environment's condition due to also active because products are usually sold in
sales of Bounty Fresh. leading supermarkets. Bounty Fresh
● Due to the pandemic, other bird flu should also make sales expansion or
incidents, and economic downturn find other spots apart from
currently happening, Bounty Fresh supermarkets because competitors may

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products are also slowing down hence, the exceed the height of the sales in terms
company can focus on improving their of the proximity to consumers.
products and services more for the time ● Bounty Fresh must be a transparent and
being. honest company so that they will meet
● Bounty Fresh should offer more products the consumer’s expectations and be a
that will be consumer-friendly and would brand they plan to be loyal with.
suit the consumer’s preferences no matter ● Due to the coronavirus outbreak and
what their age is as meat products are economic downturn, a lot of products
usually consumed by everyone. will be expected to be more expensive
● Bounty Fresh must spread awareness and so Bounty Fresh should look for
advertise more about their products being possible alternatives to not lose a
the highest quality and guaranteed safe significant amount of consumers.
rather than other products sold in wet
markets or supermarkets.

CHAPTER 3 Forecasting

a. Tools

1. Judgmental approach- This approach is for Bounty Fresh Food to address

subjective inputs in forecasting the possible trends. It uses intuitive and subjective
judgment wherein past data can be analyzed to identify patterns to predict future
market trends and can quickly adapt to changes.
2. Market surveys - Bounty Fresh Food uses consumer inputs as a forecasting tool
as a means of assessing customer’s preferences and demands. Utilizing this method
could help Bounty Fresh to obtain information that could assist them in addressing
customers’ insights about the products that may be used in improving their outputs.
Consumer surveys can be done by sending feedback on the website and Facebook
page wherein they could send comment, opinion or either critique through their
email and/or answering survey posts. The information collected is useful in helping
Bounty Fresh Food in identifying what the customers want and in making decisions.
3. Executive opinions or Consensus method - This approach is used in developing
a forecast. There would be a meeting of upper-level managers and experts, and their
opinions and knowledge will be combined forming a final forecast. The views of
managers and executives are obtained for forecasting sales or in making a specific
decision.
4. Test marketing technique - This forecasting technique is utilized by Bounty Fresh
Food to primarily forecast the demand of their products in such a way that, before
they launch their products in public, they usually test it by acquiring 'free taste' in
supermarkets by urging individuals to taste their product. It helps in identifying
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whether the product would be competitive on the market. People's feedback is an

advantage because it can help in identifying errors that might arise during the
release of the product, in that way it will be easier for them to improve their product.

CHAPTER 4 Product and Service design

a. Product design and redesign

There are many varieties of products that Bounty Fresh can offer and one
of their most popular and in-demand are poultry products. However, not everyone
prefers chicken all the time so Bounty Fresh opted to offer other meat products such
as beef and pork as well as organic eggs. It is very essential for the company to
adapt to consumer preferences as they are still the ones who will purchase the
products. The company also keeps up with the constant change in terms of the needs
and wants of their consumers such as serving already cooked chicken or meat that
leads to the birth of Chooks-to-Go, and competes with constant innovations of their
competitors, and of course is to not be left behind by the ever changing world that
is full of new discoveries. Lastly, we will now see the products offered by Bounty
Fresh to its consumers.

● Chicken

The business started in the 1980s with only 5,000 chickens in one layer
house in Bulacan making poultry production in the food industry. As time passed
by, the company expanded their business into fresh meat making chicken the first
product that Bounty Fresh had sold. Over the years Bounty Fresh showed their
excellence in poultry business and in 2009 they won the Best Poultry and Livestock
Company in Asia (Asian Livestock Industry Award, Malaysia). They make sure
that they will not fall behind the competition which gives birth to chicken nuggets,
chicken popcorn, chicken sticks, and many more. And even made a retail business
for roasted chicken, “Chooks-to-Go”.

○ Whole Chicken
■ Everyday Chicken

One of the farms fed spring chicken with delicate meat ideal for cooking.
Your family would now be able to appreciate the delicate taste of chicken that is
good for five to six people.

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■ Young and Tender Chicken (Neck On)

Since this chicken is young, it is smaller than the regular one but it is more
juicer and tender which makes it perfect for roasting.

■ Family Feast Chicken

Have a special occasion at home? Feeling regular chicken isn’t enough for
the whole family? This is the perfect chicken for the table because it is
approximately 1.8kg much bigger and heavier than the other chickens. The bigger
the better.

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■ Premium Chicken -

The absolute best item in their product line, appraised as one of Asia's Best
chicken, works as the center of Bounty fresh products. It could be perfect for any
kind of dish.

■ Free Range Chicken -

These chickens are grown naturally in an outdoor farm unlike regular or

conventional chickens that are always inside the layer house. This is the best choice
for health-conscious people because studies say it has higher protein content that
conventional chicken (Price, 2018)

■ Tegel Free Chicken

Due to the 2018 acquisition, the Bounty fresh became the owner of Tegel
Group and have access to their selling products (Gonzales, 2018). Ideal for any
event whether it be Christmas, birthdays, or anywhere it requires a chicken, right?
What's not to cherish? A 100% raised in New Zealand, Free roaming, and no added
chemicals.

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○ Cut-ups
■ Chicken Breast

This chicken breast is taken from the pectoral muscle of the chicken thus
giving the consumers a lean meat and health benefits. This is also available in other
varieties such as skinless chicken breast.

■ Chicken Drumstick

This chicken drumstick can be enjoyed on every occasion and can be served
in different flavors such as spicy, saucy, or plain. This cut of chicken can also be
used in other dishes and can be fried or baked.

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■ Chicken Leg Quarter

This chicken leg quarter consists of a drumstick and thigh in one piece. This
cut would be perfect for barbeque or fried dishes.

■ Chicken Thigh

These are frozen leg quarter chicken cut-ups that could be perfect for any
recipe that a person needs, it can be soups, pasta, or even for dishes. Making it
significantly more helpful to utilize just what you need and store the rest in its
resealable bundle.

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■ Chicken Wings

These wing cut-ups are perfect if the consumers wanted to have a marvelous
dish good for everyone, then partnered with different kinds of dipping sauce such
as barbeque, blue cheese, sweet n’ sour, garlic parmesan and many more.

■ Chicken Gizzard

Who said gizzard cannot play a part in dishes? Bounty Fresh makes sure
that even the internal organs of chickens have value. People can use this in adobo,
Arroz a la valenciana, pancit, and many more because it adds taste to the food.

■ Chicken Liver

This chicken liver is rich with protein, essential fatty acids and also contains
Vitamin B12 and Vitamin C. This can also be enjoyed as fried, sautéed, or can be
added in other dishes such as adobo or bistek.

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○ Breaded Chicken
■ Chicken Nuggets

These frozen chicken nuggets are perfect for an easy and delicious
breakfast. You can just simple deep fry it or use an air fryer and that’s it! Your
delicious chicken nuggets are ready to devour.

■ Chicken Popcorn

This chicken popcorn is a small bite-sized chicken that is breaded and fried.
This dish is perfect for watching movies as late night snacks.

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■ Breaded Chicken Sticks

These breaded chicken sticks are made with chicken breast meat for a juicy
and golden bite of freshness. Different sauces such as barbeque, sweet and sour,
cheese and many more will certainly make this dish even more perfect!

■ Top Torikatsu

This classic Torikatsu is a famous Japanese dish of fried chicken coated in

panko bread crumbs and also comes in other flavors such as Classic, and Cheese
and Chives.

■ Top Toriburger

This Top Toriburger is perfect for its appearance, texture, and taste. Consumers can
also choose from different flavors such as Classic Mayo, and Cheese and Chives.

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■ Saucy Torikaraage

This Saucy Torikaraage is the newest easy and quick to prepare meal that is
made with 100% flavorful all-natural chicken meat. It also comes in two flavors
which are the Sweet and Sour, and Teriyaki.

● Pork

Due to a successful start of the business, they have added more products in
the process and one of it was pork which was a good move because it added value
to their livestock. It has a variety of products to be offered because pork is separated
into enormous segments called basic cuts, represented in the pig outline. These base
chops are then separated further into singular retail cuts, which is the thing that you
find at the supermarket that serves its best quality. Here the products they are
offering:

○ Pork Cuts
■ Sinigang Cut

Specifically but not limited for the “sinigang” dish that all Filipinos love.
This pre-cut pack is made for home cooks to avoid long hours of butchering and
gives them more time to cook.

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■ Porkchop

Porkchop cuts are not processed, and are less fatty, than different cuts of
pork with a lighter flavor. Making pork chops a healthier option and enticing staple
for such countless gatherings. It can be used in dishes such as pork steak, garlic
butter pork chops, grilled pork chops and many more.

■ Pork Belly

Craving for Korean “Samgyeopsal” then pork belly is the key because it is
a cheap, greasy cut of meat from the underside of the pig close to the loin.

■ Pata Slice

Since pata is one of the most unfavorable parts Filipinos use it to be utilized
for a wide assortment of dishes. While it isn't greasy, it gets huge loads of flavor
from the layers of skin and litid encompassing it. It is usually utilized for crispy
pata, patatim, KBL, hamonado and many more.

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■ Ground Pork

It can be useful to any kind of dish because it is made up of different parts

of pork. Some of the dishes that can be made from it are meatballs, shanghai, pork
giniling, menudo, siomai and many more.

■ Adobo Cut

It’s a large cut with bunches of fat and tissue that make it ideal for moderate
cooking, yet in addition makes it a universally useful one. It's a useful slice to broil
entire as its layers of fat assistance make it juicer.

■ Bacon Cut

This kind of meat is freshly cut with its rich, pungent taste and fresh, liquefy
in-your-mouth surface, this adaptable red meat makes certain clutch to its nature of
frying because it’s made a very nice touch of crispness that would be perfect for
breakfast.

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● Beef

Another product line offered by Bounty Fresh are Beef products. It is rich
in protein, vitamins and nutrients. Most meat can be utilized as is by just cutting
into specific parts, like meals, short ribs, steak, and other different cuts are prepared.
The following are different kinds of cut that are available in bounty fresh.

○ Beef Cuts
■ New York Steak / Beef Steak

Want some classic evening with a special someone? It’s the perfect dinner
that anyone can make. A New York strip steak comes from a cow’s loin, this is a
part of meat that isn't in substantial use by the cow, which implies that it is
especially delicate.

■ Ground Beef

Craving for taco? Ground beef is a perfect beef for you. Ground beef is
finely chopped using a grinder or mincing machine, it is usually used as an
ingredient for hamburgers, pasta and many more.

■ Beef Stroganoff

It is intended but not limited to the Russian dish, Stroganoff, a strip of beef
with a very generous amount of cream. It can be used in various dishes such as beef
and broccoli, Mongolian beef, bee stir fry and many more.

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■ Beef Shanks

The leg portion of a cow, steer, or heifer is known as beef shanks. It's
commonly used in Filipino dishes like beef bulalo and kare-kare

■ Beef Sukiyaki

Beef Sukiyaki has a very thinly cut beef that makes it more tender and juicy.
It is most commonly seen in Japanese dishes like shabu-shabu.

■ Beef Cubes

Cube steak is a thin slice of beef that has been cubed or squared. It is also
used in some various Filipino dishes such as Pork menudo and Beef adobo,
caldereta, braised beef, beef mechado and more. Is a part of cow’s meat generally
from top round or top sirloin, usually softened by wild beating with a meat
tenderizer, or utilization of an electric tenderizer.

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● Eggs

Under the Chen Family, the Bounty Fresh Chicken started with egg
production in 1986. The eggs of Bounty Fresh is known for setting the “Golden
Standard in the Philippines” during the 2017 World Eggs Day because of their well-
known unique color of “Golden Yolk” which assures the consumers that their eggs
are of good and high quality, healthy, fresh, nutritious, and came from laying hens
that are nutritiously-fed and raised in environment-friendly and regulated houses
that meets the global standards for food management and safety. The laying hens
of Bounty Fresh are maintained in its peak health and its immune system is kept
strong by feeding them feeds that are formulated by the nutritionist of the company.
Supplements are also given to their egg laying hens and are hormone-free, making
the Bounty Fresh eggs surely safe for consumption of humans. The eggs of Bounty
Fresh are available in different varieties which are rich in minerals like zinc, iron,
and copper, and vitamins as well such as vitamins D, B2, B6, and B12.

○ Premium Eggs

The light golden yolk of Bounty Fresh Premium Eggs proves that their
chickens are raised in an environment that is healthy. Premium Eggs are best to use
as an ingredient in any family dish or in baking that needs a lighter yolk.

■ Premium Large Eggs

Premium Large Eggs' shells are reliably sleek, neat, flaw-free, and
indications of good reproducing.

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■ Premium Medium Eggs

These new, medium eggs create a decent wellspring of protein for meals
you can have a positive outlook on. They're appetizing for some morning meal
plans. For a speedy and good evening nibble, cut up some hard-bubbled eggs,
moisten with seasoning, and combine into a dish.

○ Specialty Eggs

The Bounty Fresh Specialty Eggs have mid-golden yolk, which proves that
these eggs are enriched in vitamins and minerals, making it enjoyable to indulge in
any time of the day. The Specialty Eggs of Bounty Fresh are the following:

■ Special Vitamin E Eggs

Special Vitamin E Eggs are wealthy in the mainstream cancer prevention

agent that benefits to sustain our skin seem bright and fresh.

■ Special Organic Selenium Eggs

Organic Selenium Eggs include the fundamental cell reinforcement that can
fortify the immune system, hinder cerebrum work misfortune, and decrease the
danger of specific tumors like a bosom disease.

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■ Special Omega -3 Eggs

Omega 3, otherwise called unsaturated fat, is beneficial for the heart. It

benefits reduced stroke, lessen the exposure of cardiovascular breakdown and
sporadic pulses.

■ Special Nutri-Filled Eggs

Special Nutri-Filled Eggs assortment is a worthy supplement to your

children's eating routine since they are the primary sets in a cluster, which means
they hold every one of the significant and strong supplements and amino acids
fundamental for their developing bones.

○ Free-Range and Cage-Free Brown Eggs

The Free-Range and Cage-Free brown eggs of Bounty Fresh have dark
golden yolk, which shows that these are highly and extremely nutritious and tastier.

■ Specialty Free Range Eggs

Free Range Eggs are delivered by hens that are allowed to ramble around,
allowed to expand their wings, and allowed to do common exercises like bathing
underneath the daylight and outside air each day. The eggs produced by hens will
in general be healthier and more delicious as a result of their openness to daylight
and ravenous dietary pattern because of their broad motion.

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■ Specialty Cage - Free Eggs

Cage-Free Eggs are healthier and more delectable than the normal new eggs
you can discover in the supermarket.

● Chooks-to-Go

The Bounty Agro Ventures, Inc. (BAVI), a privately held company

headquartered in the Philippines, owns the Chooks-to-Go shop chain. It is the
country's largest roasted chicken retail business which sells processed meats for
off-premise consumption and roasted chicken.

○ Roasted Products
■ Sweet Roast Oven Roasted Chicken

This is the classic flavor of Chooks-to-Go roasted chicken that is delicious

even without sauce. Its sweet flavor will definitely make the consumers come back
and buy again.

■ Pepper Roast Oven Roasted Chicken

This is the flavor with the right kick of pepper and special spices. The juicy
goodness of Chooks-to-Go Pepper Roast is sure to be scraped to the bone.

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■ Fried Chooks

The Fried Chooks is a roasted chicken that is also fried. Its taste really bites
from skin to bone.

■ Liempo

Chooks-to-go made the favorite liempo of the Filipinos juicer and more
delicious with special spices which will make the consumers surely savor every
bite.

○ Chooksie’s Products
■ Chooksie’s Whole Chicken

The Chooksie’s Fresh Chicken is an affordable chicken that comes in three

sizes to choose from: "Lite”, “Regular”, and “Jumbo". Filipinos can now enjoy
eating chicken every day as it fits the budget of every Filipino family. Consumers
will be assured of the quality of Chooksie’s Fresh Chicken because it is from
Bounty Fresh, the Asia’s Best. It is available at selected Chooks-To-Go outlets.

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■ Chooksie’s Marinado

The Chooksie's Marinado are Chooks-flavored chicken cut-ups that can be

cooked anytime and anywhere by the customers. It is available in Sweet, Spicy, and
Pepper flavors are available in selected Chooks-To-Go outlets.

■ Chooksie’s Cut-ups

Consumers can now save even more on affordable chicken because at the
cheap price for a 600-gram pack, consumers can now serve a dish for the whole
family. With the Chooksie’s Chicken Cut-Ups, it is surely that it fits in the budget
of the consumers due to its affordability.

■ Chooksie’s Spicy Necks

The Chooksie’s Spicy Necks offer a unique flavor of sweet-and-spicy taste

which is perfect to be eaten as a dish or as a snack. This can be bought at Chooks-
to-Go outlets at affordable prices.

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○ Disney Products
■ Chicken Licken (Disney Chicken Hotdog)

Kids will surely love the Chooks-to-Go Disney-themed chicken hotdogs

and is also perfect as a packed lunch or snack for kids. It has a 1kg jumbo size that
can be purchased.

■ Disney Chicken Nuggets

The Disney Chicken Nuggets are crispy and golden chicken nuggets that
are dipped in barbecue sauce. Customers can choose between Mickey-shaped or
Heart-shaped nuggets. The Chooks-to-Go Disney Chicken Nuggets have 200g per
pack available for sale.

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○ Other Products
■ Pork Barrel

The Chooks-to-Go “Pork Barrel” are crispy fried pork rinds that are even
made more delicious with garlic and vinegar. This is perfect for snacks and also
perfect to be eaten even during drinking sessions.

CHAPTER 5 Strategic Capacity Planning for Products and Services

a. Capacity Requirements and Tools

Bounty Fresh is known as the leading poultry integrator in the country and
only very minimal information is open to the public in respect for their strategies
and production operations. However, there are a few articles, cases, and interviews
available on the internet to further understand how this small family business turned
into one of the biggest corporations in the country. Bounty Fresh proves to be the
forefront of the poultry industry in the Philippines, with 6.74 percent to the growth
in earnings in 2012 thus, making it still the leading brand in the poultry industry.

The graph below shows the revenue of Bounty Fresh using its own company
metrics. We see that the revenue rises from 13.2M Pesos per quarter in 2020 to
132.4M Pesos in the first two quarters of 2021. This rise in revenue can be attributed
to many of the decisions made by the company whilst dealing with the Covid-19
pandemic. One of the reasons attributable for this is BAVI’s contracting growers
for the company which helps in expanding the production of chickens that Bounty
Fresh uses in order to produce their products. Another potential factor is that the
supply of chickens being undisturbed whilst other diseases like the African Swine
Flu (ASF) has been ravaging the other sources of meat that the public has, thus
raising the price of pork, and turning more customers to buying chicken instead.

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b. Strategies

Bounty Fresh Food Inc. has served its customers for roughly 41 years.
Started as an egg production business in the 1980s, to a total food chain corporation
in its 20th year. The Bounty Fresh Food Inc. has invented abundant and plentiful
ideas, innovative even, to rise on top of its competitions. They have created and
implemented both new and old business strategies, focusing more on product
research in an attempt to differentiate themselves in the market, which successfully
landed them the 2009 Asian Livestock Award in Kuala Lumpur. Branding their
Bounty Fresh Eggs as the market leader in the country, Chooks-to-go as one of the
prominent brands of lechon manok in the Philippines, and their famous chicken
livestock that is used on big fast food chains in the country.

The Bounty Fresh Food Inc. primarily focuses on their product

differentiation to further transform their product to become uniquely different and
more profitable. Followed by slowly penetrating the market with goods that
essentially complements their original brand, offering a variety of products
stemming from their own quality induced livestock farms and broilers. It started
modifying their products by introducing the usage of vacuum packaging in the early
2000s, to combat the “ladlad” system, to safely prevent it from bacteria and
improve the overall freshness and quality of their poultry. In 2017 the company
started implementing Zero Antibiotics chicken which is a huge step in dealing with
the global threat of Antimicrobial resistance or AMR in the Philippines, making it
the first brand and company to do so. They have also produced eggs products that
have special vitamins E eggs and other eggs that have added nutritional value to
further penetrate the market and appeal to customers who value nutritional facts.
They have also used Disney related images and characters to appeal to their young
customers as well. They also have marketed their products to our Muslim brothers,
giving a feeling of inclusivity in the brand name, approved by Halal Certification
as they have secured themselves in the Islamic market. These strategies further

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increased the sales of the company as it reached a lot of potential customers and
proved that they produced the highest quality of poultry and meat products.

As they further expanded, the company decided to venture into the fast food
industry, serving us the famous Chooks-to-go with the famous tagline “masarap
kahit walang sauce”. They have found another way to become unique from their
competitors by diverting from the norms of lechon manok that are sauce based.
These innovations have allowed them to continue being the top poultry farm in the
Philippines. Lastly, Bounty Fresh must make sure that all their current contract
growers are working efficiently and effectively to meet the growing increase of
demand of their products and they must also maintain good relationships with them
and make sure that both sides are in a win-win situation to ensure that there will be
no further damage or problem in the future.

c. Demand Management Strategies

As the population increases, the demand for food also increases. Bounty
Fresh Food Inc. has solidified themselves as a staple in Filipino households as the
company values bringing happiness to families of all kinds. The company also
regularly conducts market and product research that helps the re-penetration of their
newly improved products to the market.

The pandemic has launched back every business and hugely affected the
market thus, the company should consider finding ways to decrease their price,
since their products can lean on the expensive side in which low-income earners
may not afford especially during this time and situation. However, due to limited
pricing flexibility in the broiler industry and poultry farming businesses therefore,
decreasing the price of their products can be worrisome.

The company should consider pulling up all traditional advertisements like

billboards, newspapers, and magazine clippings. And then consider investing in
online advertisement and increasing the daily engagements of customers in social
media advertisements. Second, they should use the “order-and-go” delivery
services for their product or partner up with major delivery services like
FoodPanda, Grab, or Mr. Speedy. The company should also consider creating retail
stores near housing units or subdivisions just like other competitor brands,
Monterey and Fresh Options. Since their products are usually sold in leading
supermarkets, this limits the reach of more potential and possible customers
because some of them would rather prefer to buy in wet markets than to travel
longer to the supermarkets.

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Next strategy is that Bounty Fresh Food Inc. can pursue possible
development of wholesale distribution to cater other brands. They can also extend
partnerships with hotels and other restaurants that are currently limited in this set
up. The company should always continually train all their staff and employees to
maintain top grade services, good work ethics and of course service efficiency.

The company must maintain their brand image by preparing or researching

ways to develop their products especially when hindered by new avian diseases.
The brand should also find ways to lessen their prices to appeal more in Filipino
households and the masses and should slowly expand their reach. Building more
dressing plants in the different regions of the country can also help the company
expand its operation and production and would help in decreasing expenses that are
related to travelling the products from one place to another. Lastly, introducing new
products in its course like vegan products to appeal to those non-meat eaters would
be a good strategy to reach more customers and to satisfy their needs and demands.

III. INRTRODUCTION
In 1986, Bounty Fresh Food Inc. started as an egg producer in Sta. Maria
Bulacan under the Chen Family and today, it has been known as one of the largest
poultry integrators in the Philippines. Throughout the years, Bounty Fresh Food
Inc. showed innovations that have shaken the market such as being the first
company to use vacuum packaging for its chicken products in the local market,
implement the single-stage hatchery incubation system, and Zero Antibiotics
chicken through the No Antibiotics Ever (NAE) Technology. Another achievement
of the company is that some of their products are Halal certified according to the
rules established by the Islamic Council thus, ensuring and maintaining the highest
quality of the products. They also offer different special egg products with Vitamin
E, Organic Selenium, Free Range, and Nutri-filled egg. Bounty Fresh Food Inc. is
known as the company behind the famous Chooks-to-Go which is considered as
the ruling market leader in the rotisserie business and the first and only roasted
chicken that can be enjoyed without the use of sauce. Among all these
achievements, it is safe to say that Bounty Fresh has already established themselves
as the brand that they are today because of the support of their customers.

However, despite all these achievements and appreciation, the company is

still open and in need of further improvements because there is no brand that is truly
perfect. We also cannot state how long Bounty Fresh will have a good perception
and quality of products because the large scope and excellence of their business

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also requires a large investment, time, and attention for the consistent systems and
continued good business profits. From the good correspondence of Bounty Fresh,
the expectations of its consumers in the company are also high because it satisfies
consumers and thus improves the number of potential consumers. Therefore, apart
from being a good benefit to the business, it is also high pressure for the company
to improve due to their large market growth. Most of all, there are also other
companies or competitors that also have a good reputation in this sort of market,
primarily Magnolia which is also a well-known company. Thus, Bounty Fresh has
a lot more to converge on because not only the concepts of other companies are
their competitors, but it also includes the wants, needs, and expectations of their
consumers. It is still significant to have a plan for business improvement even if it
has already a good identity in the perceptions of consumers because of the
increasing demand from the market every year. Hence, Bounty Fresh can choose
which area of operational activities they can further improve or give more attention
from forecasting, up to supply chain management. Whereas, the researchers chose
an operational activity that they think Bounty Fresh can focus more to increase
sales, achieve greater customer loyalty, and improve the market position.

IV. OPERATIONAL ACTIVITIES

Bounty Fresh Food Inc. has been continuously supplying all leading and large
retail supermarkets such as SM Markets, Landers, S&R, Puregold, Robinsons
Supermarkets, All Day Supermarket, Landmark, Rustans, etc. to reach their
consumers. Lately, with the innovative and efficient use of technology and the
challenges brought up by the pandemic, their consumers can buy from them online
from their subsidy via The Meat Market by Holly Farms. This is for the means to
provide convenience to their consumers and for them to save time and effort instead
of going into supermarkets, however it is only applicable within Metro Manila only
and not to those in the provinces. Consumers can also buy Bounty Fresh products
from resellers in some communities instead of going to supermarkets. Bounty Fresh
Food Inc. will benefit from resellers' assistance in the product sales and expanding
their firm. Resellers, on the other hand, can obtain profit and have the opportunity
to receive discounts from the company from big amounts of purchases.

Developing and focusing on improving their facility location by putting up

outlet stores like their competitors, Monterey, and Fresh Options can enhance their
efficiency in customer service and to reach more potential consumers in the
market. Bounty Fresh Food has only been supplying leading supermarkets and this
prevents and limits them from reaching more consumers. People prefer and would
rather buy their chickens, meat, and beef from wet markets for convenience and
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low cost goods than taking efforts to go to groceries and supermarkets. The
establishment of outlet stores near housing units or subdivisions would help Bounty
Fresh Food Inc. in becoming more well-known in some communities and not only
in supermarkets. It will also obtain cost reduction for the company in terms of
facility location. There is also a possibility that it will increase and contribute to
their revenue and demand for their products. Furthermore, consumers would also
benefit from outlet stores because they would have more options since all of their
products would be offered in one location, it would take less time, and they would
be able to purchase affordable products fitted for their budget.

V. DESCRIPTION OF THE SUPPLY CHAIN

Supply Chain is the step-by-step process that involves the production and
distribution of the products. Bounty Fresh has always been the exemplary poultry
business in Asia because they did not stop innovating more products or
implementing new kinds of strategy that could further expand their business. The
first step where the magic of supply chain starts from farms where chicken, pork,
and beef were fed, taken care of, and bred. Since Bounty Fresh showcases “Contract
growing”, a new kind of partnership, that would help independent poultry farmers
or locals to grow their business and will earn more. They make sure the quality of
products will not be comprised in this kind of implementation, since poultry farmers
or locals will provide the land, labor and utilities, the company will provide the
following:

 Antibiotic Stewardship Programs (ASP) for chickens to take care of, it will be
preventive measure of antimicrobial resistance,
 Seminars that will impart information or adds knowledge,
 Food of the chickens.

This allows the company to have more supply of raw materials which will
result in more means of income. Then, the second step will be processing. Those
eggs, chicken, pork, and beef that are ready to hatch will be transported to factories
for standard check. Inside the factory, they will check the quality of each product.
For eggs, they will remove the bad, like crack eggs, from the good to make sure
that their products are in the best condition. For raw meats they will be processed
in abattoir, then they will be freshly cut into different meat cuts and will be put into
containers or packages.

The third step is distribution or transportation. The Bounty Fresh Group of

Companies has two companies under it which are: Bounty Fresh Food Inc. (BFFI)
which distributes their products in retail shops, supermarkets, and independent
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distributors wherein consumers can buy their products in Metro Manila and Central
Luzon; and Bounty Agro Ventures (BAVI) which distributes products in different
localities in provinces. The CTSI logistics, a third party logistics, is responsible for
the overall transportation system or the delivery of their products to its assigned
destinations. The delivery-lead time or the time allotted in transiting the products
set by the Bounty Fresh Group of Companies is within 1 day in Metro Manila, 1-2
days in Southern, Northern and Central Luzon, while 2-3 days in Visayas and
Mindanao.

The fourth step is retailing. Even though Bounty Fresh has an online store
that consumers can directly order anytime, they still distribute their products into
supermarkets such as Landers, SM Markets, S&R, Robinsons, Puregold, All Day,
Merkado, Rustan’s Marketplace, Walter Mart, Landmark, and The Meat Market.

VI. RECOMMENDATION

Based on all of the data presented and further deliberation, the researcher’s
recommended action for Bounty Fresh Food Inc. is to research possible locations
for their future storefronts, preferably near neighborhoods, subdivisions, or
condominiums. This will help in generating more sales from consumers that prefer
accessibility and efficiency. Nowadays, consumers would rather shop, purchase,
or buy from stores that are most accessible for them. By creating outlet stores, this
bridges the gap of accessibility. Since physical stores offer every product in one
place, this layout provides no competition from other brands unlike in supermarket
settings. It also helps lower the price offered by the brand by bypassing third party
or additional prices conducted in groceries and other establishments. These
physical stores can further provide more in depth interaction with the brand and its
consumers. It can also be customized to fit the brand's image. According to Tlapana
(2009), store layout has a significant impact in influencing consumer’s information
processing, purchase intentions and attitude. These storefronts built near accessible
and convenient locations have the potential to improve Bounty Fresh Inc. in
numerous ways, for example; these storefronts can allow the company to have more
influence over their customers by way of allowing direct and personalized
communication with their customers, which can help improve customer retention,
creating and maintaining loyal patrons to the brand.

Putting up storefronts does not necessarily mean that the company will go
separate ways with their partnerships with the supermarkets and will go solo.
Bounty Fresh Food will still continue their partnerships with these brands as they
have been working together for years. The researchers wanted to recommend trying
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out to venture into long term investment of building an outlet store as this will be
very profitable even after the pandemic ends. The researchers also recommend
locating these outlet stores and new facilities in provinces outside Metro Manila or
NCR during the experimental stage. These include provinces such as Bulacan,
Laguna, Rizal, and Cavite wherein a lot of subdivisions such as Camella Homes,
Amaia, Ayala Land, etc. are also located. The reason why the researchers chose
these areas is because they have limited access to the products and supermarkets
compared to those in the cities who also have an opportunity to shop online through
The Meat Market. Further study is also recommended by the researchers to ensure
that the locations where the outlet store will be put up to is marketable.

Another recommended action for Bounty Fresh Food Inc. is to extend their
advertisements beyond traditional methods and to reach out towards social media
as a platform to promote their products, with the aim of incorporating towards
audiences that are more inclined towards eating chicken —Health enthusiasts,
Younger people, Pollotarians, etc. This can help towards making Bounty Fresh
Food Inc. more relevant in the social media environment.

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VII. REFERENCES:
Bounty Agro Ventures, Inc. (BAVI). (2020, May 6). The Bounty Blog - Bounty Agro

Ventures, Inc. (BAVI) - Page 33. Bounty Agro Ventures, Inc. (BAVI) - We Make

Food Exciting Everyday, Everywhere. https://bavi.com.ph/blog/page/33/

Bounty Agro Ventures, Inc. (BAVI). (2021b, February 16). Zero Antibiotics Chicken -

Bounty Agro Ventures, Inc. (BAVI). Bounty Agro Ventures, Inc. (BAVI) - We

Make Food Exciting Everyday, Everywhere. https://bavi.com.ph/zero-antibiotics-

chicken/

Bounty Fresh Chicken - Overview, News & Competitors | ZoomInfo.com. (n.d.).

ZoomInfo. https://www.zoominfo.com/c/bounty-fresh-chicken/397649233

Bounty Fresh leads poultry industry expansion in 2012. (2012, July 15). Philstar.Com.

https://www.philstar.com/business/agriculture/2012/07/15/827839/bounty-fresh-

leads-poultry-industry-expansion-2012

BusinessMirror. (2017, December 20). Bounty Fresh unveils secret behind the delicious,

nutritious ‘Golden Yolk.’ https://businessmirror.com.ph/2017/12/20/bounty-fresh-

unveils-secret-behind-the-delicious-nutritious-golden-yolk/

BusinessMirror. (2020, January 28). BAVI, contract growers help grow the poultry

industry. https://businessmirror.com.ph/2020/01/28/bavi-contract-growers-help-

grow-the-poultry-industry/

Communications, B. C. (2021, February 13). BAVI President: No Shortage of Chicken in

PH - Bounty Agro Ventures, Inc. (BAVI). Bounty Agro Ventures, Inc. (BAVI) -
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We Make Food Exciting Everyday, Everywhere.

https://bavi.com.ph/2021/02/13/bavi-president-no-shortage-of-chicken-in-ph/

J. (2019, September 22). What Are Three Benefits Of Retailing? Ecommerce.

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Pe, R. (2014, February 28). How big is the Philippine poultry industry? INQUIRER.Net.

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Q&A with Bounty Fresh CEO Tennyson Chen on Innopreneurship and Overcoming

Adversities as CEO. (2019, November 5). The Marketing Mentor.

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