Mang Inasal Essay
I. Executive summary
Mang Inasal is a locally owned fast food restaurant in the Philippines that will be soon, positioned as an international franchise through our creative approach to the company’s image and detail presentation. Mang Inasal will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. Mang Inasal is the answer to an increasing demand for BBQ’ed fast food, to be consumed while having quality time with your friends or family in the shopping mall. In today’s highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another due to its variety of product line and services. Dubai, a city state, is now becoming the model metropolis in the Middle East’s new economic boom.
With more than a total population of 2.106 million (2013), mainly from neighboring countries (Malaysia, Indonesia, Thailand and the Philippines), Dubai’s import in meat, vegetables and so on in its sector is the strongest in the region. Our main priority is to establish one fast food restaurant in a crowded mall, preferably in one of prominent shopping malls in Dubai. Later, our effort will be a further development in our service and product line in the surrounding area. This plan is prepared to obtain a location for the initial launch of this concept. Additional financing will need to be secured for the fast food restaurant.
The financing, in addition to the capital contributions from shareholders, will allow Mang Inasal to successfully open and expand. The initial capital investment will allow Mang Inasal to provide its customers with a value-driven, entertaining experience through the creativity of its founders. Mang Inasal will entice the diverse culture to bring their friends and family with our innovative environment, fresh-cut Chickens, and selection of unique signature sauces.
II. Business overview
A. Business profile
Mang Inasal (Ilonggo term for Mr. Barbecue), the Philippines fastest growing barbecue fast food chain; serving chicken inasal, pork barbeque and other Filipino favorites, was first established on December 12, 2003 in Iloilo City by businessman Edgar Sia II.
Apart from the usual food presentations of multinational food company copycats, Mang Inasal endeavors to adhere to elements that bear a distinctively Pinoy stamp-grilling with charcoal, rice wrapped in banana leaves, a marinade concocted out of local spices and herbs, bamboo sticks for skewers, and the ambience that encourage skinamot (Ilonggo term in eating with the hands) whenever chicken inasal is served. In the year 2014, seven marketer’s decided to franchise Mang Inasal . They decided to penetrate the new market in Dubai, with the use of their experiences in the marketing field, they will try to capture the new market of the Middle East to patronage Mang Inasal to the population of Dubai.
They will try to use the cultural, economic, political, and technological environment of their market area for their advantage in order for them to achieve their objectives and goals as a marketeer, with the use of the cultural diversification of the country we marketeers will try to cater this diverse cultured by offering new product lines such as grilled lambs and chicken for Muslims and original mix recipe of Mang Inasal such as pork inasal and chicken inasal for non-Muslim customers. In using our SWOT matrix we will try to consider our strengths and opportunities in gaining new insights, marketing strategies, and programs to adapt and improve our brand equity towards our market.
B. Background of the product
Mang Inasal is a fast food restaurant chain; its vision is to be the first choice and leading fast food chain everywhere nationwide. Its mission is to provide great tasting products and quality services to our customers with a great pinoy ambience fast food chain nationwide. Develop, motivate and retain employees in providing benefit programs, employment security and good working environment by applying new technologies for better and easy way of serving. Do our best to provide good quality products and services to our franchisees with fairness and integrity. And provide livelihood programs to the community by treating them as our business partners.
If you want a great deal to satisfy your enormous appetite, the Mang Inasal
Menu is the one to choose from. With the most reasonable prices covering a variety of meals, the Mang Inasal menu will make you feel like a winner! Really, your money’s worth is guaranteed with filling and satisfying meals. Have you ever heard of unlimited items offered by restaurants? Well, the Mang Inasal Menu offers unlimited rice and that’s the best deal a Pinoy can ever want. Eating big servings of chicken and pork is gratifying with cups and cups of rice. Mang Inasal is a Filipino restaurant chain that offers delicious chicken barbecue as the main product. Its recipe is uniquely delicious with big chicken servings marinated, skewered over charcoal and served over banana leaves; it’s a real Pinoy recipe everybody loves. The Mang Inasal Menu is excellent; everything in it is 100% delicious.
Mang Inasal has a variety of product line raging from BBQ’ed Chicken legs to Grilled Fish with unlimited rice, and its desserts are the Leche Flan, Toron Split served with a two scope ice cream covered in choco syrup, and the famous Halo-Halo Filipino Styled dessert, served drinks are Sago at Gulaman, Iced tea, Coca cola and hot coffee. It has been one of the most favorite eateries nationwide with over 445 branches and growing, and a staggering 10,000 employees system, it has become famous and profitable for any individual to finance as a business.
During Mang Inasal ’s reign in the fast food chain it has consistently growing over the past year finishing in the top 3 in the most visited fast food chain in the Philippines and Edgar Sia aim is to be top two in the Fast food chain industries beating Chowking in it’s position.
Below are some menus that Mang Inasal serves to its customers:
PABORITO/FAVORITE MEALS (UnliRice)
PM1 Chicken Leg w/ Rice
Barbecued chicken leg and thigh with unlimited rice
PM1.5 Chicken Leg (spicy) w/Rice
Barbecued chicken leg and thigh with unlimited rice (in spicy flavor) PM2 Chicken Breast w/ Rice
Barbecued chicken breast and wing with unlimited rice
PM3 Pork Inasal w/ Rice
3 sticks skewering pork, barbecued in inasal way, unlimited rice PM4 Sizzling Fish w/ Rice
Sizzled Bangus fish with unlimited rice
PM5 Sizzling Pork w/ Rice
Sizzled pork with unlimited rice
PM6 Roasted Fish w/ Rice
Roasted boneless Bangus with unlimited rice
PM7 Grilled Liempo w/Rice
Grilled liempo marinated with sweet and spices with unlimited rice Others
SM1 1pc Chicken Inasal w/ Rice
Chicken Inasal is a grilled chicken dish and one of the well-known Ilonggo dishes with unlimited rice SM2 2pcs Pork Inasal w/ Rice
Pork Inasal is a grilled pork dish and one of the well-known Ilonggo dishes with unlimited rice
Pancit Bihon or Pancit Guisado is a Filipino noodle dish and is a staple second to rice. Dinuguan at Puto Cake
Pork blood stew, blood pudding stew, chocolate meat served with 3 puto cake
Sago at gulaman drink is sweet, thirst-quenching and popular during the sizzling summer months. Softdrinks
Mang Inasal serves some of the most popular fast food chain such as sprite, coke and royal Iced Tea
Freshly brewed each day from a premium blend of tea leaves. Tea is a natural source of protective antioxidants Coffee
Mang Inasal serves piping hot brewed coffee for our customers
Halo-halo is a popular Filipino dessert with mixtures of shaved ice and evaporated milk to which are added various boiled sweet beans, jelly and fruits. It is served in a tall glass or bowl. Leche Flan/Creme Caramel
Crème caramel flan or caramel custard is a custard dessert with a layer of soft caramel on top, as opposed tocrème brûlée, which is custard with a hard caramel top. Turon Split
is a dessert made out of banana concealed in a lumpia wrapper
With Mang Inasal s variety of product line and with a very high value brand name and profitable institution it can compete with other fast food chain nationwide, but can this ever growing business be used in other countries, can it’s business practices and product lines and system be brought on foreign soil not just to challenge its competitors head on but to prosper as a fast food chain and complete its vision as the leading BBQ fast food chain in the country? Below is an analysis of the environment of where Mang Inasal Branch will prosper, its analysis includes Company analysis, Competitor Analysis, Customer analysis, and Environmental analysis which includes the PEST or Political, Economic, Social or cultural and Technological analysis in which the Franchised Mang Inasal branch will launch.
C. Background of the Market
The destination of where Mang Inasal will prosper will be in the nation of UAE specifically in Dubai.
Why Dubai? Why did choose the country Dubai instead of any other country? Because Dubai is the mecca for growth is the no.1 country in the oil business giving us an advantage in making use of its economic growth? And it stands in having the highest imports in any other UAE capitals in all of the Middle East but above all we choose Dubai for one single purpose.
And that purpose is Food. People in Dubai love to eat, and as a fast food chain business that is one great news for us, but what separates us from our competitors’ is the product line that we offer because statistic shows that people in Dubai likes to eat rice since rice is the best side dish when eating meat with sauce or vegetables. The imported food of Dubai consisted mainly of fish, rice, bread, dates, yogurt, homegrown vegetables, and meat from sheep, goats, and camels. And this are most consumed food that people eat in Dubai
D. Situational analysis
The goal of our company is to be the first choice and leading barbequed fast food chain of everywhere nationwide, and to provide great tasting product and quality services to our customers with the use of different kinds of products we will try to capture the large market in our new market area and cater their culture by offering new product lines that are made from lamb/sheep products. With the use of our marketing expertise we will try to analyze what is our opportunity and threats in our environment to maximize our growth in the fast food industry.
Our restaurant focuses on customers who loves to eat food, whose customer classes are mostly class C’s D’s and E’s since the product of Mang Inasal are affordable and cheap, and whose customers that has an active lifestyle in eating, our restaurant’s new product line are specialize in chicken, pork and possibly new product line lamb with unlimited rice to align its food chain culture towards the culture of our target market.
Our strengths as a fast food chain is endorsement, large target market, market leader in barbeque fast food chain, accessibility, and strong commissary system in which case we can utilize these strengths to create new marketing strategies and programs in developing new product and services to offer in our growing and diverse market.
Our weakness as a fast food chain is unhealthy food, Filipino culture, brands under the Mang Inasal , commissary struggle, and lack of research for other countries since Mang Inasal is under Jollibee Corporation McDonalds can consider us as a threat in the market area and that the lack of technology can cause a delay in our R and D in improving our restaurant’s products and services.
The total population of Dubai is 2.106 million (2013) Approximately 85% of the expatriate population (and 71% of the emirate’s total population) was Asian (chiefly Indian, Pakistani, Filipino, Bangladeshi and Sri Lankan). About 3% of the total population of Dubai was categorized as “Western”. In addition, 16% of the population (or 288,000 people) lived in collective labor accommodation were not identified by ethnicity or nationality, but were thought to be primarily Asian. Approximately 85% of the expatriate population (and 71% of the emirate’s total population) was Asian (chiefly Indian, Pakistani, Filipino, Bangladeshi and Sri Lankan). About 3% of the total population of Dubai was categorized as “Western”. In addition, 16% of the population (or 288,000 people) lived in collective labor accommodation were not identified by ethnicity or nationality, but were thought to be primarily Asian.
Our restaurant focuses on the market area of Dubai a fast growing country, whose cultural heritage of the people are both religious and hospitable people, but in Dubai as their culture diversifies and meets new culture that will conflict their own belief, our restaurant will try to manage and use this diverse culture in our favor, such as using the most delectable food of Dubai: Lamb as our new product line.
As our value drivers we will use our variety of products and combine some of them to create new promos and products such as free upsize drinks, Pancit bihon/bijon perfect combo, Solve sarap and many more value propositioned products.
We will use our traditional advertising to let our restaurant be known to the target market, with the use of controlled advertisement of every six months monitoring to see how customers respond to our billboard, flyers, and TV advertisement but statistic shows that Mang Inasal favorable ways of advertising are through Social media, TV, Events and Experience and Word of mouth. Next is trying to penetrate the new market through the use of discounts and promo’s due to our grand opening in the new target market for the first month, and maintain its standard customers a day and invest in improvement towards the target market.
As a threat our competitors has the advantage to be the first known fast food chain in the country such as McDonalds, Burger king, Del Taco, Wendy’s, Hardee’s, KFC and Pizza hut. But what separates our restaurant towards our competitors is the unique product line that we offer, since we offer BBQ’ed and Filipino styled desserts products with the use of the most popular side dish that the food industry can offer which is Rice, we can patronage and capture the market through the use of our product line and cater new product line to adapt to the culture of Dubai.
The strength of our competitor is Cost advantage, strong management, real estate, pricing power, innovative culture. Financial leverage, asset leverage, supply chain, size advantages, economies of scale, cost advantages, unique products, technology. The strength of our competitors can cause major problems in our brand recognition process of our restaurant, since some of our competitors are known brands; it can cause problems in the decision process strategy and in our brand awareness towards our competitors.
The weaknesses of our competitors are Negative publicity, Unhealthy food menu, Job and high employee turnover, and Low differentiation. The weaknesses of our competitors that are mostly towards its employees can be an advantage for our restaurant, in which case we can use this to offer new jobs and programs for our workforce.
Mang Inasal is currently under Jollibee food corp. who owns 70% of Mang Inasal ’s market share but as a fast food chain Mang Inasal is now currently profitable since the owner of its large market share is the no.1 leading Fast food chain in the Philippines with over thousands of branches both nationally and internationally making it a main player in the Fast food chain industries, with its other fast food subsidiaries such as Greenwich, Red Ribbon, and other businesses.
III. Target Market
E. Market Segmentation
Dubai is located on the Persian Gulf, in the northeast of the United Arab Emirates. Dubai is the second largest emirate with an urban area of 3885 sq. km and the city is roughly 35 sq km. However it will expand to twice that size with the addition of the man-made islands; the Waterfront, the three Palms, the World, the Universe, Dubai land, as well as the construction in the desert.
The UAE culture mainly revolves around the religion of Islam and traditional Arab culture. The influence of Islamic and Arab culture on its architecture, music, attire, cuisine and lifestyle are very prominent as well. Five times every day, Muslims are called to prayer from the minarets of mosques which are scattered around the country. Since 2006, the weekend has been Friday-Saturday, as a compromise between Friday’s holiness to Muslims and the Western weekend of Saturday-Sunday.
Dubai buying behavior: Consumers in the three largest emirates tend to shop more at hypermarkets and frequent the smaller shops and convenience stores for last-minute food needs. In the more distant suburbs and the less-populated areas of the federation, smaller grocery and convenience stores play an important role in food shopping. The number of hypermarkets is increasing steadily with retail chains such as Carrefour, Spinneys and Lulu dominating the big format supermarket trade. These key retailers tend to partner with foreign companies to procure imported food products directly, while small format grocery retailers rely on consolidated deliveries for replenishing their stock levels.
The continued growth in both affluence and the expatriate population has created the need for a diverse range of food products in the UAE the food retail sector has responded by providing a range of foods and ingredients suiting the tastes of the different ethnic groups in the country. Data monitor has evaluated a number of food categories and projected growth at retail in most areas, particularly chilled foods, bakery/cereal products, savory snacks and pasta/noodles.
F. Macro Environment PEST ANALYSIS
Political and Legal Environment
Overview of the Political System of United Arab Emirates: The United Arab Emirates is made up of seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ra’s al- Khaimah and Fujairah. The United Arab Emirates gained its independence from the UK on December 2, 1971. Its constitution was established on independence, and was made permanent in 1996. The form of government can be referred to as a federal presidential elective monarchy, as the president is elected from among the absolute monarchs who rule each of the seven emirates.
The UAE, the world’s eighth largest oil producer, maintains a free-market economy with minimal restrictions on private-sector activities, international trade and capital movements. Despite the impact of the global economic downturn, the UAE’s economy has proved to be remarkably resilient. Higher oil prices, increased government spending and a noteworthy resurgence in tourism, transport and trade have contributed to the upswing in the economy. In addition, the successful restructuring of debt owed by high-profile companies, solidarity among the emirates and accommodative monetary and fiscal policies have all played a role in bringing stability to the market. The Economy of Dubai is mostly in the tourist sector
and other finances of the country with over 50%
of the countries finance is covered and 5% in oil
10% in real-estate, 12% in transportation
and communication and 13% manufacturing.
Social and Cultural Environment
Dubai’s culture is rooted in Arabic and Islamic tradition Dubai is built on foundations that are rich in history and tradition. Dubai is a forward-looking society that is equally bound to its culture and heritage. Dubai has always been renowned for its tolerant outlook; Dubai has built a reputation for being open to new ideas and ways of doing things. This has enabled Dubai to become a global center for innovation, tourism and business. Sophisticated: Dubai is a city with style and charisma. Dubai has successfully fused sophistication with charm. It has redefined the meaning of luxury with its stunning hotels, award-winning restaurants and its position as an international shopping destination. Energetic: Dubai has an aura of vitality and a get-up-and-go spirit.
Visitors are struck by the ingrained optimism and spirit of adventure and innovation that permeates through all layers of the community. To a holidaymaker, a business traveler or a resident, Dubai is a place where there is always something exciting to see and do. Embracing: Dubai aims to bring together the best in people Dubai’s success is based on the vision and commitment of its leadership, the generosity and aspirations of its people and the contribution of many people from different parts of the world, many of whom have chosen to make Dubai their permanent home. This creates a blend of many cultures that coexist peacefully. But in a religious country Dubai is a very conservative country having a strict dress code and with a very diverse culture in its social class.
Dubai is today recognized as an international trading port. While rapid sophistication of the 21st century technology has changed the face of Dubai from timeless deserts to a thriving economy with strengths in trade, services, manufacturing and technology, Dubai maintains a fine balance of cultural legacy and a modern metropolis.
G. SWOT Analysis
Large Target Market
Market Leader in Barbeque Fast Food Chain
Strong Commissary System
Brands under the Mang Inasal
Lack of Research for other countries
Local Culture and Tradition
Philippines- Agricultural Nation
New Brand Acquisition
Foreign-owned and Local SME’s
Global Financial Crisis
Increase in Oil Prices
Sanitary Issues Standards/ Health and Safety
H. SWOT Matrix
2. Large Target Market
3. Market Leader in Barbeque Fast Food Chain
5. Efficient Commissary System
1. Filipino Culture
2. Unhealthy food
3. Brands under the Mang Inasal
4. Commissary struggles
5. Lack of Research for other countries
1. Local Culture and Tradition
2. Cultural Diversity
3. Brand Acquisition
4. Urban Development
5. Philippines being an Agricultural Nation
(S3+05+03) Consider raising their own chickens
(S3+S2+04) Expand network of stores to newly developed areas in the country (S3+03) Acquire business in order to penetrate new market
(W2+03) Acquire restaurants that serve healthy food and introduce a healthy product line. (W5+02) Intensity research on other countries’ culture in order to cater effective marketing strategy towards customers culture and lifestyle Threats
1. Foreign-owned and Local SME’s
2. Global Financial Crisis
3. Sanitary Standards/ Health and Safety issues
4. Oil Prices
5. Political Instability
(S5+T3) Continue adherence to standards and become a benchmark in the government sanitary health standards (S2+S3+T5) Strengthen advertising to reinforce market leadership amidst (S3+T2) Create more affordable meals towards the target market (S1+S3+T1) Intimidate competitors by reinforcing market dominance through the use of specialized BBQ product line WT Strategies
(W5+T1) Intensify research on culture and develop marketing strategies to cater diverse market preferences (W2+T1) Can cater new product lines for a new market segment to fill in the gap between healthy foods and unhealthy foods
IV. Marketing Strategies
1. Product/Service Strategy
For our Product strategy we will use the most common strategy of Mang Inasal which is the Product development strategy – As seen in the analysis of Mang Inasal operations the past years, this strategy has been proven beneficial to the company. With good research and development, Mang Inasal is capable of continuing to produce products that fit well to the taste of their market. They could also continue innovating their current product line so as to continuously remain ahead of its competitors. And to compliment this strategy: Cost Leadership strategy – Best value strategy. In this strategy we can create a new product line to cater to a unique segment of their market. For example, creating a healthier product line for those who are weight and health conscious would be ideal.
2. Pricing Strategy
For the pricing strategy our cost leadership would be best since our product are already affordable for the market, all we need to consider is the new product line that we have to offer towards our customers in order for us to capture new market segments and to achieve our goal in being the leading BBQ’ed specialized fast food chain in the country. And with our new product line we can assess the gap between the healthy foods and unhealthy foods, and cater the culture of non-muslim by offering non pork products such as lamb and goat.
3. Place/Location Strategy
For the location strategy we will place our restaurants near hotels or inside malls but more specifically the Zamatao mall in Dubai which houses many competitors such as McDonalds, Burger king, Hardee’s, Wendy’s and so on, but these competitors are just indirect competitors since their product line differs from us, as a competitive edge, our fast food chain will be placed in front of other fast food restaurant to intimidate our competitors and in order for us to capture our desired target market with the use of our new product lines and unique product position, since our products differ from their product line we can have the advantage of product positioning
4. Promotional Strategy
In our promotional strategy we will use a controlled advertising having a 6 month monitoring towards the reaction of the customers in our advertisement to do further study in analyzing negative and positive factors in our promotional strategy and focusing on the positive reaction and lessen the negative factors of our advertisements and through the use of online and TV advertisement we can make our product known to the target market.
5. Positioning Strategy
With the use of the diverse market we can cater and create new product lines to capture new segments of the market, and we should keep to our new market for now, and should avoid risk in the new market to prevent any major financial problems towards our restaurant in order for us to keep an update in our budgeting and opportunities in gaining new technology/insights in our environment to use as an advantage for our restaurants, and with the use of new insights we can raise new supply system in the new market to eliminate unnecessary cutbacks/problems in the inventory of our products and services.
I. Financial Statement
Requirements to become a franchisee
If you are interested in becoming a franchisee of Mang Inasal, there are a few requirements you need to look into. Here are the franchise details of Mang Inasal: Franchise fee: Php 15 to 30 million
Franchise fee inclusive of: use of brand, operational support, opening marketing support, and training support Product security deposit: Php 800,000.00
Franchise term: 7 years, renewable
Store space requirement: 150 square meters to 200 square meters Advertising fee: 2% of gross sales
Royalty: 5% of gross sales
Estimated cost of renovation: Php 7 million to Php 9 million
Cash Flows from Operating Activities:
Operating Income (EBIT)
Loss on Sale of Equipment
Gain on Sale of Land
Increase in Accounts Receivable
Decrease in Prepaid Expenses
Net Cash Flow from Operating Activities
Cash Flows from Investing Activities:
Sale of Equipment
Sale of Land
Purchase of Equipment
Net Cash Flow from Investing Activities
Cash Flows from Financing Activities:
Payment of Dividends
Payment of Bond Payable
Net Cash Flow from Financing Activities
Net Change in Cash
Beginning Cash Balance
Sending Cash Balance
J. Balance Sheet
Other current assets
Total Current Assets
Property And equipment (Fixed assets)
Deferred tax assets
Other noncurrent assets
Total Noncurrent Assets
LIABILITIES AND EQUITY
Accounts payable and accrued expenses
Credit Card Payable
Total Current Liabilities
Additional Paid-In Capital
V. Breakeven point
In the Breakeven point our price per unit is Php 115 our variable cost is Php 99 and our estimated total fixed cost is Php 600,000:
Price per unit – Php 115
Variable cost – Php 99
Total fixed cost – Php 600,000
600,000 ÷ (115 – 99)
600,000 ÷ (16)
115 x 37,500 = Php 4,312,500
The breakeven point in sales is 4,312,500 per month
VI. EXIT PLAN
For our exit plan strategy, we decided to sell-out the company in case of bankruptcy or other major financial problems, because sell-out is the most easy way in earning back the owner’s equity and the same time earn dividends afterwards – it clearly is in our interest to ensure our firm is a good fit for the buyer and therefore more likely to prosper. In other words we would create a win-win situation for both our company and the firms who are willing to buy the company’s asset and other subsidies.