Company and Marketing Strategy Analysis: Pancake House

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EXECUTIVE SUMMARY
A. History
Originally established in 1970, Pancake House’s Pioneering entrepreneurs Milagros Basa, Leticia Zamora, and Carmen Zaragosa introduce freshly baked pancakes and waffles in varied flavors and preparations to a predominantly rice-based consuming market. As it opens its first restaurant in Magallanes, Pancake House geared to serve the A, B, and upper C markets. Sta. Rosa Food Services Corporation (SRFSC) was incorporated to handle the management and operation of Pancake House in 1974. Several years later, it was jointly co-owned by another formidable company, Extrovert Inc.

After nearly three decades, in January of 2000, the Pancake House chain expands to different parts of Central Luzon. Out of a total 22 outlets, three outlets are situated in Laguna and Tarlac, while the rest are Metro Manila. Nine are company-owned and the others are franchised outlets.

On February 15, 2000, Martin P. Lorenzo leads a new local investor group in the purchase of all of SRFSC and Extrovert’s operating assets pertaining to the Pancake House chain of restaurants. The new owners become known as Pancake House, Inc.

B. Market Share
The Systemwide Sales of the Group remains at P2.2 Billion. Restaurant Sales of P1,403.2 million increased by 3.5% from last year’s P1,356.2 million which continue to uphold the Group market’s share in the casual dining industry despite the decrease in consumer spending. The increase is a result of the additional Outlets the Company established and the relocation of non-performing Outlets to better locations.

C. SWOT Analysis
Strengths and Weaknesses
Pancake House introduced freshly baked pancakes and waffles in varied flavors and preparations to a predominantly rice-based consuming market. They were then able to expand and offer a wide range Filipino and international array of dishes. They are very competitive, Pancake House is now ready to expand to different Asian countries. However, the brand name itself is can be considered as a risk. Pancake House may be perceived by new customers to be a restaurant that offers only pancakes and waffles. With limited promotional tools being implemented, this false image cannot be corrected.

Opportunities and Threats
Pancake House today is a modern and dynamic chain of casual dining restaurants that has preserved its distinct assortment of delicious food offerings and unforgettable homey dining experience. This has kept generations of families coming back and enabled the company to expand even outside the country. As casual-dining restaurants starts to emerge nowadays, competitions have been stiff. With limited marketing promotional tools are being used, customers may opt to try new competition brands.

D. Recommendation
Pancake House should utilize the five promotional tools more efficiently and effectively. The company must realize that there are different other ways of reaching their target market, as suggested in this paper. Expansion of its commissaries is also needed to lessen delivery and transportation costs and to guarantee that the products being delivered are fresh and of high quality. With these factors taken into consideration, optimization of financial performance can be achieved.

I. INTRODUCTION

A. History

The original Pancake House was born in 1970. Pioneering entrepreneurs Milagros Basa, Leticia Zamora, and Carmen Zaragosa introduce freshly baked pancakes and waffles in varied flavors and preparations to a predominantly rice-based consuming market. The first restaurant opens in Magallanes, geared to serve the A, B, and upper C markets. In 1974, Sta. Rosa Food Services Corporation (SRFSC) was incorporated to handle the management and operation of Pancake House. Several years later, it was jointly co-owned by another formidable company, Extrovert Inc....
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