Introduction to Mang Inasal A. Company Profile
Edgar Sia II, then 20 years old, took the entrepreneurial path when he founded Mang Inasal and began its operations in Iloilo City, Philippines on December 12, 2003. The restaurant initially offered chicken inasal to its clientele which was wellreceived by the Ilonggo people. As time went on, it offered more Filipino-inspired cuisine to the mass market. As such, the driving force behind Mang Inasal’s exponential growth
lies in its uniquely Filipino food offerings, its value for money and its serving of unlimited rice for customers. All these factors add up to create Mang Inasal’s distinct brand identity, which has led to its becoming one of the country’s fastest growing fast food
chains. Fast forward to seven years later, the company currently has 223 branches around the country, with its management aiming to expand to 500 branches by the year 2012, with a hundred new stores opening annually. The company offers Paborito Meals and Sulit Meals to its customers, as well as Palamig Selections, Merienda Meals and other well-loved Filipino viands. The Paborito Meals are categorically more expensive compared to the Sulit Meals, whose lowest offering is at an affordable 49 pesos. However, their serving portions are bigger compared to the Sulit Meals. Mang Inasal also offers traditional Filipino dishes such as the Beef and Bangus Sinigang, Bangus and Pork Sisig, and Dinuguan, Halo-Halo, among many others. Mang Inasal promotes sustainable community living by providing employment opportunities and by sourcing out local materials in its business operations (example, banana leaves, chicken oil, bamboo sticks). In that matter, the company takes an active stance in developing livelihood programs for the betterment of the community it serves. The company helps preserve the Filipino tradition kinamot , which in Ilonggo means to eat with one’s hands. As such, Mang Inasal restaurant chains around the country have a designated washing area where customers can wash their hands prior to dining to maintain sanitary eating standards. During the recent economic crisis, Mang Inasal managed to sail through the distress unharmed. Sia mentioned that the affordability of the company’s offerings
proved to be a competitive advantage to the budget-conscious Filipino - thus, strengthening its foothold in the fastfood consumer market, enabling the company to grow in times of economic turmoil. Well, the Mang Inasal Menu offers unlimited rice and soup and that’s the best deal a Pinoy can ever want. Eating Eati ng big servings of chicken and pork po rk is gratifying with cups and cups of rice. The chicken oil is use to be mixed with rice instead of gravy. It encourage eating with hands instead of using spoon and fork. It makes different from other fast food chains because it offers grilled chicken, not fried. For the reason that company has a lot of meals that offers to the customer, and more people are availing their products then it must happen sometimes some of their crew can’t assess all
customers which is the reason for the delay of orders.
In October 2010, 70% of Mang Inasal was acquired by Jollibee Foods Corporation, the largest food chain company in the country, for P3 billion ($68.8 million). As of March 2014, the chain has grown to about 460 stores. B. Value Chain Analysis
The rapid expansion of Mang Inasal stores throughout the country proves to be a competitive advantage to the brand. This may be attributed to Mang Inasal's efficiencies in its value chain, which will be discussed below:
Franchising and Store Operations
Mang Inasal is a fastfood brand open for franchising opportunities. Currently, the brand is open for franchising at a cost of 7 million pesos, with franchise terms renewable every seven years. The company provides operational guidance for new franchisees, including training for their time-tested operations system, staff support, and other marketing initiatives. Before approving any franchise deal, the company looks at the site where the store will be built and they would assess whether or not the location is ideal and profitable. Mang Inasal hires project inspectors, who are mostly architectures and civil engineers, to oversee the construction of a branch. They ensure that the company is able to locate its stores in high traffic areas, such as malls or near schools. Most Mang Inasal stores are open from 10:00 am to 10:00 pm, and each branch has at least 40 employees. These individuals take or prepare the customer's orders, maintain the cleanliness of the facilities, or perform other routinary work, supervised by the store manager. Each of the company's employees received rigorous training before they are considered part of the permanent staff of a branch. As well, Mang Inasal has management trainees whom they hope to become branch supervisors. All this adds up to ensure that each customer experiences fast and quality service from the store.
Marketing
Part of the company's marketing strategy involves advertising through print, billboards, radio and television ads. They bank on promoting further the three defining characteristics of the brand - affordable Filipino food, a lively atmosphere to dine in, and the kinamot eating concept. Most print advertisements of Mang Inasal emphasize the company's serving of unlimited rice to dine-in customers. This is a particularly effective marketing strategy considering how Filipinos are heavy consumers of rice. Cost-wise, the food at Mang Inasal is affordable which furthers their marketing efforts of affordable quality food.
Logistics
Mang Inasal sees to it that that there will not be delays in the delivery of the raw materials that will be prepared then served to customers. In urban areas they have a daily delivery of raw products by means of delivery vans. In rural areas, on the other hand, they utilize two transportation methods - the daily delivery of raw materials through delivery vans and through public transportation such as the pedicab. They utilize the pedicab to deliver non-perishable products such as charcoal and bamboo sticks, which they source locally in the area. Sourcing
Whether in urban or rural regions, Mang Inasal is stimulating economic activity where their branches are located. They purchase their raw materials - calamansi, charcoal, banana leaves, sorbetes, vegetables, fish, bamboo sticks and other ingredients through local producers of these materials. However, these suppliers have to undergo strict quality check to be conducted by the Purchasing Department at the company. In this way, Mang Inasal can ensure that the quality of food in each of its 223 branches are consistent and of high quality. This also provides lesser costs for transportation seeing how each branch sources its materials in its own community, thereby lessening production costs incurred.
Franchising and Expansion
As for future plans for growth, Mang Inasal, through the holdings investment firm Injap Investments, Inc., is planning to join the Philippine Stock Exchange (PSE) this 2010. However, this is still determinable depending on whether current economic conditions will improve or not. Sia plans to raise around two billion pesos to fund its expansion of company-owned stores nationwide.
B. Market Profile
The target market served by Mang Inasal is the middle class Filipino family, with monthly income ranging from 12,000php to 30,000php. Moreover, these families live in homes where members of the extended family live in the house as well, thereby making it a large household. Hence, the company offers meals that range from 49php for the Sulit Meals, 99php for the Paborito Meals, with the highest priced viand priced at 155php (Beef and Bangus Sinigang). It is reasonably priced considering how its value for money is high, taking into consideration the serving portions, the friendly customer service and the warm, localized eating ambience provided by the company. How the company achieves this cost advantage is accomplished by sourcing out one hundred percent of its raw materials locally, unlike other fastfood chains who import some of its production materials from abroad. In addition, the fastfood chain banks on its traditional Filipino cuisine, fast service, and the lively dining experience it presents to its customers to attract new and retain recurring customers. As such, it is to Mang Inasal's competitive advantage that it
has found its niche through Filipino families who want to find a truly Filipino fastfood dining experience without going beyond the family budget. Hence the company's slogan, "Hahanap hanapin mo". As well, the company's primary strategy lies in Mang Inasal's strategically locating its stores in high foot traffic areas to attract more passers-by to enter the store, eat, and enjoy the Mang Inasal dining experience (kinamot). In particular, most Mang Inasal branches are situated beside call center companies, public service establishments, in malls, and other heavily-condensed locations. As mentioned previously, the company is one of the fastest growing fastfood chains in the country – and their speedy rise can further be amplified by choosing an endorser who is an ideal personification of their brand. Mark Bautista, a twenty eight year old Filipino artist, is Mang Inasal’s primary endorser. The most recent TV
advertisement starred by Bautista shows the man narrating his humble beginnings as to how he has made it to become one of the country's most revered artists, adding that his move to Manila made him long for home, and how dining at Mang Inasal alleviates the homesickness he feels. Furthermore, to quote Sia as to why Bautista was chosen as the brand’s endorser, “I think we (the company and Mark Bautista) have some
similarities. Mark also started in 2004, the same with Mang Inasal... And we feel that Mark, like Mang Inasal, has a very big potential, coming into the next few years as they slowly unfold.”
These are the followings sulit meals that Mang Inasal serves to the customers. Mang Inasal Menu – Paborito Meals (PM)
Mang Inasal Menu – Grupo Meal
Mang Inasal Menu – Mirienda meals
PM 1 paa - Barbecued chicken leg and thigh with unlimited rice PM 1.5 paa - Barbecued chicken leg and thigh with unlimited rice (in spicy flavor) PM 2 pecho - Barbecued chicken breast and wing with unlimited rice PM 3 Pork inasal - 3 sticks skewering pork, barbecued in inasal way, unlimited rice PM 4 – Bangus sisig, unlimited rice PM 5 – Pork sisig, unlimited rice PM 6 – Boneless bangus, unlimited rice PM 7 – grilled liempo, unlimited rice
3 paa or pecho (leg – thigh or breast – wing), ginataang kangkong, kamote chips, 3 plain rice, 3 buko pandan jellies, 3 – 16oz Coke Pancit Malabon Arroz caldo Dinuguan Pan Inasal
Ginataang halo-halo Mang Inasal Pie SM 1- 1 pc. Chicken Leg with rice SM 2- 1 pc. Chicken Thigh with rice SM 3- 1 pc. Pork inasal with rice Ice scramble Sorbetes Buko Pandan Jelly / Coffe jelly / mango Jelly Turon Split Saging Melt Leche Flan
Mang Inasal Menu Sulit meals (SM)
Mang Inasal Menu Panamis
Mang Inasal Menu Add ons, ulam add on
Pancit Molo Bangus Sinigang Pork Sinigang Atiba Banus Sisig Pork Sisig Kamote chips Lumpiang sardinas Chicken chicharon Ginataang kangkong Ensaladang talong
Mang Inasal Menu Pinoy Almusal (PA)
PA 1- Tapsilog PA 2- Tosilog PA 3- Longsilog
III. Defining the Problem: - Wrong delivery of orders and slow servings.
IV. Defining Research Objectives: - To be able to improve customer service and maintain its position in the market. - Expand its market in order to win the heart of masses. - To reach more than 600 branches nationwide on the year 2015.
V. SWOT Analysis: Strengths
Weaknesses
Fast growing company Brand image is visible
Locally adapted menus
Lack of motivation
Product availability and quality (product shortage)
Opportunities
Threat
International expansion
Government regulates the non- usage of plastic.
Direct competitors and indirect competitors
Competitive price pressure
Customer complaints due to slow service.
Home delivery
meal
Trends towards healthy eating Similar concept and services.
Low customer retention
Labor shortage
VI. Survey research: As a survey I asked my friends, my classmates and the some customers in Mang Inasal to answer my questionnaire. And these are the questions as follows: Kindly answer these survey questions. 1. If you are going to eat outside, which restaurant will you prefer? a. b. c. d.
Andok’s
Mang Inasal Jollibee Mc Donald’s
2. In terms of customer service, which of the following satisfy you? Please rate 1-4 Andok’s
Mang Inasal Jollibee Mc Donald’s
3. Are you satisfied with the products and services that Mang Inasal offered? a. YES b. NO
4. If yes, what can you say about the product and the service that they provided to you and to other customers?
5. If no, what is the reason?
Based on the survey that I’d conducted on my friends, my classmates and my the customers in Mang Inasal these are the results: According to the result of the survey, I’d noticed that my friends prefer to eat in
Mang Inasal for that reason that it is in reasonable price and it totally fit on Filipino taste. But then there consideration is that the service provided by the management is too slow and sometimes they deliver wrong orde r to the customers. And one of my friends said that one time when she got her lunch at Mang Inasal with her co- workers they’ve waited for 30 minutes because there are a lot of customers and a lot of orders been made. But then when their orders have been delivered, my friend saw that the inner part of the chicken is still a little bit bloody, so my friend returned it and waited for 25 minutes again. She quoted “I’ve been waited for almost one hour before I took my lunch, but then I can’t
resist myself not to eat at Mang Inasal because they have the lowest unlimited offer. And their foods totally fit on Filipino tastes.
VII. Data Collection: Most preferred restaurants of the customers.
Company's Name
Ratings of:
Total
Ranking
Friends
Classmates
Customers
Andok's
3
2
1
6
4
Mang Inasal
9
7
8
24
1
Jollibee
4
6
6
16
2
Mc Donald's
4
5
5
14
3
Customer’s satisfaction regarding the customer service provided by the restaurants.
Company's Name
ratings of: Friends
Ranking
Classmates
Customers
Andok's
4
4
3
3.666667
Mang Inasal
2
3
1
2
Jollibee
3
2
4
3
Mc Donald's
1
1
2
1.333333
Customers’ satisfaction and dissatisfaction rate on Mang Inasal products and services.
Products
Services
Satisfied
Dissatisfied
Satisfied
Dissatisfied
75
25
45
55
VIII. Chart Analysis: Most preferred restaurants of the customers.
Andok's Mang Inasal Jollibee Mc Donald's
Customer’s satisfaction regarding the customer service provided by the restaurants.
Andok's Mang Inasal Jollibee Mc Donald's
Customers’ satisfaction and dissatisfaction rate on Mang Inasal products and services.
80
Product Satisfied
60
Product Dissatisfied
40
Product Dissatisfied Services Satisfied
20
Services Dissatisfied 0 1
IX. Decision Analysis: Mang Inasal must develop techniques and strategies on how to provide a fast and satisfactory customer service. Because of the concern that Mang Inasal is so poor in terms of services the company needs to focus on motivating their employees to become more attentive in their work, duties and responsibilities. But then the overall result of the research is that Mang Inasal is still the number one provider of Filipino Taste Foods and has the reasonable price.
X. Findings: Based on the flow of the research, the Mang Inasal Crew/Staff has the problem regarding with the provided service to the customer, due to lack of motivation and discipline. And some employees are hard headed and always late on the time of their duties, in result to overcrowded customers while lacking of staff/ employees. XI. Alternative Course of Action: A.C.A. #1: The management must focus on their staff/ employees to be more active to their duties and obligations. Advantages: 1. Maintain their position in the market 2. Avoid losing of customers 3. Develop fast and satisfactory service Disadvantages: 1. Additional company expenses
A.C.A. #2:
Observations/Recommendations Mang Inasal is now considered as one of the best choices of fast food chains for Filipinos because of its unique dining experience. Aside from this experience, customers are patronizing the products because of the unique selling concept. It is heavier in the stomach, not in the pocket. It is the best for Filipino ambiance which the company encourages to eat with hands. To have greater revenue and to contribute more in the food industry, the company should have a rapid increase of opening of branches and to explore international market. It should help the country to promote or advertise that we offer good foods. Mang Inasal should also offer nutritional items for the menu for health and wellness concerns and promote an ambiance of being caring to customers in terms of health and wellness. Marketing support is lacking on this company, compared on the other fastfood chain in the market right now. They must have strong marketing support like more T.V and radio ads, flyers, billboards and other forms of advertisement, they must capture the heart and minds of the Filipino people in their ads.
