PAMAS EATERY

Marketing Plan

Submitted By:
REYES, Shaia P.
SEVERO, Adrianne S.
TUNGCAB, Clarence T.

Submitted To:
Dr. Danilo R. Merais

MAY 2017
I. Executive Summary

PAMAS Eatery is located near Gate 1 at DLSU-D, it is a good decision that they position it in

front of the university because there are many students. In terms of food, they offer different

varieties of foods that the customers will love to choose from, it is good and the good thing is

they are serving a large serving of their dishes. They serve their customer politely. Their food is

affordable and budget friendly to their customers especially for the students who are looking for

a meal that is affordable but will also satisfy them. PAMAS have posters outside their eatery and

it is effective because as the customers like us sees their poster, it can make the customers want

to eat their or try their products and service. This marketing plan includes the target customer

which is the students, the things that they need to improve and also the strengths, weaknesses,

opportunities and threats of the said eatery is also given. The competitors like RMS Eatery,

Nanays Cuisine and Momos Grill is also evaluated and being discussed. The segmentation,

targeting and positioning is also present. The overall budget of the said eatery is 155,000 within a

month.
II. Situation Analysis

II.a. Customers

The target customer of our chosen small enterprise is primarily students because they

offer meals at affordable prices, they are one of the eateries that offers Unlimited rice which is

a great way to attract customers who are in a budget or to get the most value for their money. The

business is a direct selling meaning they sell directly to the customers at a fixed location which is

a great advantage for them because De La Salle University Dasmarias is right across the street

of the establishment and is on the side of an internet caf/Print shop and dormitories of students,

there is also a high school that is near to the establishment and it is just a walking distance for

customers. They currently do not have any loyalty programs but if they choose to establish one, I

would suggest it would be something like the students having special discounts. For example,

5% off for students this will encourage previous customers to eat there again and attract new

potential customers in the process.

 II.b. Company

The small business enterprise PAMAS Eatery has a potential to become something bigger

but they need to improve a few things in order to do so. First, I recommend that they invest in

advertising through social media sites like twitter and Facebook. Second, renovate their

restaurant interior and provide loyalty programs. They need to make their business known to

ensure an increase in customers and profits because there are other restaurants that offer the same

menu and prices.

II.c. Context

Although they were not affected by the governments action to closed some

establishments in the area last year due to expired business permits, health code violations and

other numerous things they need to ensure the customers health and safety when serving food,

they need to train their staffs in proper hygiene and food safety and provide the required

documents to the government so they can acquire permits and other needed documents.

II.d. SWOT Analysis

Strengths

Affordable prices
Wide variety of menu selection
Location is near for customers
Place is comfortable to eat with, because they even bother to install an air-condition

system that not all eatery has

The interior design is decent and has lights

Weaknesses

Competitors are near the establishments location

 Limited tables and seats inside the establishment
Lack of advertisements and outdated design of sign

Opportunities

Expand the establishment to increase numbers of tables and seats available

Establish social media page and Increase advertisements
Train staff in proper food safety procedures

Threats

Location is near other competitors that offer same menu at the same price points
Lack of advertisement and loyalty programs

II.e. Collaborators

They need to ensure reliable sources of supplies and establish a good relationship with

them to ensure orders of supplies like beverages and other consumables are safe to consume and

not pass their expiration and ensure that deliveries are on time or on schedule. Having good

relations with suppliers is not enough. PAMAS should also establish good working relationship

with its staff members from cooks to waiters and janitors to ensure the workflow on the

restaurant runs smoothly because if the staff is not working together this can lead to tensions in

the workplace and causing customers to eat elsewhere.

II.f. Competitors

They have a lot of competitors which offer the same menu at the same price i.e.: Momos

grill, Nanays kitchen, BBs tapsihan and more. PAMAS needs to be alert because the

competition is basically selling the same thing, the establishments main competitor is Nanays
kitchen which is located inside the campus of DLSU-D food square. This establishment is always

full during lunch time they serve great food and the staff are friendly customers dont need to go

outside the campus to eat. Then there is Momos grill just near PAMAS location they have a

large space for customers eating with groups of friends, one thing they all have in common is

they dont advertise through social media, they just have their signs or logos in front of their

establishments. The customers advertise for them through Verbal Marketing. For example,

freshman students will ask their classmates where is the best place to eat and so the classmate

will tell them the usual joint they eat at and the cycle continues that is why PAMAS must invest

in their renovation and expansion also their advertisements to attract more customers, because

more customers more profit.

III. SEGMENTATION, TARGETING, POSITIONING (S.T.P)

III.a. Segmentation
After a thorough evaluation and gathering information through our survey regarding to

PAMAS Eatery, based on the survey 7 out of 13 respondents or 53.8% have answered Yes
that they know and eaten at the PAMAS Eatery and 6 out of 13 respondents or 46.2% have

answered No that they dont know and eaten at that eatery. Based on the opinions and answers

of the respondents who had been experienced and eaten at the PAMAS Eatery, everyone says

that they eat at that eatery because it is affordable, some says that the foods they selling there are

delicious, it is convenient for their budget because of its Unlimited Rice promo that it able to

quenched their hunger, some others say that it looks like a restaurant. To those respondents who

do not know and didnt want to go to PAMAS Eatery these are there opinions and answers,

someone says they prefer to eat inside the campus because they know that all the foods selling in

the canteen are secured and safe rather than to eat at the eatery outside the campus, others says it

is a long walk to go there and they dont need to waste time just to eat, so they prefer to eat

inside the campus because it is near because the location of the PAMAS Eatery is a bit hidden

and hard to notice and some others say that they didnt know anything at all about PAMAS

Eatery.

The ideal customer or consumer of PAMAS Eatery are people who are seeking for

foods that is affordable and convenient because the majority of their customers are all students

who prefer to eat where they can find satisfaction and able to relief their hunger.

That is their ideal customer because some students do not have enough allowance to eat

some expensive food in some restaurants because buying food is not the only thing they need to

buy they are many other more, because they need to budget their money in case of emergencies

and in times of need. Thats why they are most likely to eat outside the campus rather than to eat
inside the campus because they find affordability and satisfaction in eating at the eatery outside

the campus. Thats why we conclude that the ideal customer of PAMAS Eatery are students

who want to save and budget their money.

Based on our thorough evaluation and investigation about demographic segmentation of

PAMAS Eatery, it is quite popular to students but we have noticed that it is quite hidden and

the location is not easy to find and cannot be noticed easily. Because they are able to segment

their business geographically and demographically that is located a bit farther and deep down the

district in front of gate 1. Thats the reason why some students or customers didnt want to go

there and didnt know about PAMAS Eatery and thats why they prefer to eat somewhere that

is near and timely convenient for them. We also conducted survey on different students regarding

to how much is their allowance per day and how much they spend on their food per day. Based

on the information gathered 11 out of 13 respondents or 84.6% answered that their allowance

was ranging from 150 pesos to 250 pesos and 2 out of 13 respondents answered that their

allowance was raging from 300 pesos to 500 pesos per day.

Regarding to the question how much do they spend on their food per day? based on the

data gathered 12 out of 13 respondents or 92.3% the amount of money they spend on their meal

was ranging from 50 pesos to 100 pesos per day and 1 out of 13 respondents or 7.7% the amount

of money they spend on their meal was ranging from 150 pesos to 250 pesos per day. Based on

gender we based it on how many males and females who answered our survey, so for the male, 8

out of 13 respondents or 61.5% and for the female, 5 out of 13 respondents or 38.5%.

In terms of its psychographic segmentation of PAMAS Eatery, they concentrated to

target students as their consumer because their place is located near the school and they also

target consumers at the low and middle class, because most of their consumers wants something
except for food that is affordable and at the same time it is convenient to them. Based on our

investigation we have noticed that the students or the consumers prefer to eat at the eatery

outside the campus and they are always preferring or seeking something that it is worth it for

them to purchase or to buy. Because according to the data we gathered, consumers like students

wants to save or to budget their expenses for their daily purchases. So thats why students prefer

to eat at the eatery outside the campus rather than to eat at the canteen inside the campus.

Because they found out that eating at the eatery outside, is affordable and worth it for them

because the foods their selling were delicious and they also provide promo like Unlimited Rice

that the school canteen does not offer to their customers, which the consumers find it out

convenient for their budget and at the same time it helps them to satisfy their hunger, because the

food you will buy inside the canteen is expensive and your 50 pesos to 100 pesos budget on

your meal cannot be able to satisfy your hunger so they rather go to eat at the eatery outside the

campus where they can find satisfaction.

III.b. Targeting
After a company has defined market segments, it can enter one segment of a given

market and should make decision about how many and which customer group to target. Target

marketing is a process of evaluating each market segments attractiveness and selecting one or

more segments to enter. PAMAS Eatery is one of many other small scale businesses around the
nation. As we have known that PAMAS Eatery concentrates and targets students as their

primary consumer. To estimate the size and profitability of PAMAS Eatery we assume that the

amount of customer they able to gathered everyday were at least 70 up to 150 customers per day.

The estimated profit that they are able to gather, according to Ms. Mylene Bornales, the owner of

PAMAS Eatery is worth around 155,000 pesos per month minus the total value of the utilities

like electricity and water bill which is around 24,000 pesos per month. PAMAS Eatery has 9

employees and their daily salary of each of her employees ranges from 250-350 pesos, 4

employees have the salary of 350 pesos/day and 5 employees have the salary of 250 pesos/day

because it depends on how long they have been serving that eatery, and if you subtracted it, the

total income of PAMAS Eatery should be around 19,050 per month as the estimated value of

the owner. The strategy of PAMAS Eatery in each segment will be, for demographics as we

have known that they concentrated and targeted students as their primary customers because they

operated their business near at the campus, but we have been noticed that their shop cannot be

noticed easily. So in order to catch the attention of other students or customers who doesnt have

an idea to their shop they should use flyers as the way of communication to them, so they able to

give information regarding to the shop and they able to locate them where they shop placed.

III.c. Positioning
Perceptual Map

PAMAS
EATERY
 Based on the perceptual map shown above, these are the qualified competitors of

PAMAS Eatery in terms of food business. The first competitor was Nanays Cuisine we have

known that it is one of the bestselling eatery inside the campus which sells high price and quality

foods. Next is the Happy Tummy it is also located inside the campus and one of the eatery at

the campus it also sells high price and quality food. Next is Oven Maid another eatery inside

the campus its sells high price and low quality food. Next is Momos Grill it is an eatery

outside the campus and its sells low price and high quality food. And last but not the least is

RMS Eatery it is located outside the campus and it sells low price and high quality food.

These are the competitors of PAMAS Eatery. In terms of the positioning of these

eateries, like Nanays Cuisine, Happy Tummy, Oven Maid theyre able to position their

business very well because theyre able to position near their target customers which gave them

the advantage to other eateries outside the campus. These kind of positioning is great because

theyre able to satisfy the customers who are looking for good quality foods rather than its price
because they are seeking for food that is safe or secured to eat and they also consider which place

is timely convenient for them so they can able to go to their next class right away. The eatery

outside the campus like PAMAS Eatery, RMS Eatery and Momos Grill have a

disadvantage in terms of positioning especially PAMAS Eatery because they arent able to

segment their business geographically and demographically that is located a bit farther and deep

down the district in front of gate 1. Thats the reason why some students or customers didnt

want to go there and didnt know about PAMAS Eatery and thats why they prefer to eat

somewhere that is near and timely convenient for them. But in terms of budget and affordable

meals they are able to win over the consumers who are seeking for convenient and affordable

food. Also, all of them have develop their very own positioning strategies, so theyre able to

statisfy their valuable consumers. Especially PAMAS Eatery they had develop their own

positioning strategy, so they can be able to satisfy the hunger of their beloved customers and they

are able to provide the apporiate facility to able to serve their customers well, like putting a

television so the customers will not be bored in waiting their order, and especially putting an air

condition that you will not expect in a small eatery like them and it ables them to gain more

customers because it helps them relax and feel at ease at their shop.

IV. Financial Analysis

IV.a. Demand

It is very essential to know the demand of our products in order to answer our customer

needs and wants. Knowing the demand will help us to determine the trend for our products.
Analyzing the demand thoroughly will give the projection of the total number of quantity of each

product that we are going to produce daily, weekly, monthly and annually.

IV.b. Historical Demand

The researchers chose the resident of Dasmarinas, Cavite as the target area. The table

below shows the population of Dasmarinas, Cavite in the last five years (2012-2016) based on

the data provided by the National Statistics Office.

Table 1

Historical Demand

Year Target Population Price Sales

2012 184,189 Php 65.00 Php 11,972,285
2013 189,604 Php 65.00 Php 12,324,260
2014 195,178 Php 65.00 Php 12,686,570
2015 200,916 Php 65.00 Php 13,059,540
2016 206,822 Php 65.00 Php 13,443,430

Table 3

Historical Supply

Year Target Population Price Sales

2012 92,095 Php 65.00 Php 5,986,175
2013 94,802 Php 65.00 Php 6,162,130
2014 97,589 Php 65.00 Php 6,343,285
2015 100,458 Php 65.00 Php 6,529,770
 2016 103,411 Php 65.00 Php 6,721,715

Table 5
Demand and Supply Gap from 2018-2022

Year Project Demand - Project Supply = Gap x MS (%) = MS (Qty)

2018 63,485,825 25,394,460 38,091,365 .06 2,285,482

2019 76,182,990 31,743,075 44,439,915 .10 4,443,992

2020 88,880,155 38,091,690 50,788,465 .14 7,110,385

2021 101,577,320 44,440,305 57,137,015 .18 10,284,663

2022 114,274,485 50,788,920 63,485,565 .22 13,966,824

Table 6
Projected Sales Based on Computed Demand and Supply Gap

Year Price per Box MS (Qty) Projected Sales

2018 Php 65.00 2,285,482 Php 148,556,330
2019 Php 65.00 4,443,992 Php 288,859,480
2020 Php 65.00 7,110,385 Php 462,175,025
2021 Php 65.00 10,284,663 Php 668,503,095
 2022 Php 65.00 13,966,824 Php 907,843,560

Table 7
Expense Forecast

2018 2019 2020 2021 2021

Raw Materials 93,479 94,549 95,607 97,549 98,798
Labor Cost 125,586 127,591 129,675 132,758 135,927
TOTAL 219,065 222,140 225,282 230,307 234,725

Table 8
Monthly Projected Sales in Volume and in Pesos

Year Price per Box Volume Projected Sales

2018 Php 65.00 1,129 Php 73,385
2019 Php 65.00 1,367 Php 88,855
2020 Php 65.00 1,591 Php 103,415
2021 Php 65.00 1,782 Php 115,830
2022 Php 65.00 2,058 Php 133,770

Table 9
The forecasted income of PAMAS for the next 5 years

2018 2019 2020 2021 2022

Sales Php Php Php Php Php
148,556,330 288,859,480 462,175,025 668,503,095 907,843,560
Less: 219,065 222,140 225,282 230,307 234,725
Expenses
Net Income 148,337,265 288,637,340 461,949,743 668,272,788 907,608,835

III.d. Product

One of the most important thing in serving customers is to offer a menu of the food they

sell for the choice of their customers. The PAMAS Eatery provides menu or options of the food

that they sell just like other well- known fast food or restaurants have. The menu is displayed in a
laminated cardboard. But mostly, the food is changing and the food preference of people changes

too. The PAMAS strategy is that they offer different variety of foods so that customers would

have more choices. They have food for breakfast like the different silog, for lunch and for

afternoon they have different cooks of chicken, pork, beef, seafood and vegetables. That kind of

strategy make the customers not to think hardly what to eat.

The brand association is what the customers think or relate the brand into being positive.

The brand associations of the PAMAS are the prices of their products, quality of the products,

and the customers contact with the PAMAS staff.

III.e. Price

PAMAS pricing strategy is common and similar to other eateries. PAMAS applies

market-oriented pricing strategy because the products that they are selling is similar to others but

they set higher prices and lower prices of their products compared to other eateries. PAMAS also

combine many products into one package only to make the price lower. Like the meal that they

are selling has free water and the rice is unlimited. Even the combined products are being sold

for lower prices, they can still have profits because it helps their eatery to be promoted in that

way. The pricing strategy of the PAMAS is competitive because there are many eateries that also

have strategies in order for them to increase their customers too.

PAMAS can make the price of the products higher or skim because PAMAS will have

larger profit to have new equipments to improve their eatery and they can improve the taste of

their products.
 The price sensitivity of the consumers is when the prices of their products can affect their

consumers purchasing behaviors. In PAMAS, consumers have more price sensitivity because

their product is not so unique in the market because they have a lot of competitors.

PAMAS may consider occasional price discounts or they may not. They can consider it

because it can target more customers and they will think that it is worth to eat at the PAMAS. On

the other hand, they can also not consider occasional price discounts because the prices of their

products are already affordable so whatever the PAMAS will decide, they will still have a lot of

customers in their eatery.

People will benefit from their pricing differentially to the segments because the PAMAS

will be able to determine market opportunities and they will be able to know the needs of their

every segment. It will also help as a better service for the consumers.

III.f. Place/Distribution

The design distribution is a selective distribution because the PAMAS is an outlet that

only covers specific area like in DLSU-D near gate 1. PAMAS can have more branches if they

want to and if their eatery is successful and well-known. They can use strategies like posting

their eatery and logo in social media so that more people especially near their place will be able

to know what PAMAS has to offer.

The PAMAS may use the push marketing strategy because it is like pushing the products

of a business into consumers mind. The possible result of the push strategy is that consumers

will be able to know and trust the products and it will be retained in their minds. On the other

hand, the pull marketing strategy is when the business want their customers to come to them. The

pull would also be good to PAMAS if they already have pushed their products to the minds of
their consumers because it would be easy for the consumers to come at the eatery on their own if

they already retained in their mind the PAMAS.

There is a communication conflict that needs to be resolved, that is between the

consumers and the eatery. PAMAS have many competitors so they have to deliver a message in

terms of what they sell so that they will have more customers than their competitors.

III.g. Promotion

The PAMAS marketing communication is the way how they offer their customers the

types of food, the quality, good service and the affordable price of their products since they are

not the kind of eatery that have well- known name and that is why they do not have

advertisement like commercials, radio ad etc.

PAMAS have posters outside their eatery and it is effective because as the customers see

their poster, it can make the customers want to eat or try their products and services. We can say

that their poster is still effective even if the goals of having more customers is already achieved

because they have still maintained the continuous growth of their customers.

The promotional tools that the PAMAS have used are the posters they are displaying

outside their eatery. Yes, it is effective but they can have more promotional tools and strategy like

posting their eatery posters and products online so that more people will be able to know the

PAMAS.

V. Timeline and Budget

Timeline Marketing Activities Budget

 Oct 31 (Monday) Bought ingredients for the P48,350
month of April.

Nov 13 (Sunday) Bought extra things for the P10,000

store and for daily use.

Nov 20 (Sunday) Payment of electricity and P24,000

water.

Dec 3 (Saturday) Flyers for advertisement P3,500

purposes

VI. Appendix

Are you a male or female?

39%

62%

Male Female

The chart tells us that most of the respondents are Male which is 61.5% while the 38.50%
respondents are Female
 Have you heard about "PAMAS Eatery"?

46%
54%

Yes No

This graph shows that 53.8% of the respondents answered Yes and 46.2% answered No.

If yes, how did you know about it?

29%

57%

14%

Friends Peers On your own Others

This graph shows that 57.1% of the respondents answered Friends, 28.6% answered On your

own (loner) and 14.3% answered Peers

And if yes, as a consumer and in your own opinion how will you describe PAMAS Eatery?

(Please specify your answer)

- For me PAMAS eatery is just like any other eatery the foods are average and the

convenient for the budget. But the locations is a bit hidden so other students and

costumers are able to be notice them and they prefer to eat to some eatery that is close by

and timely convenient for them.

- The best because it has different types of food and the price is affordable. At the same

time, PAMAS has delicious food that can surely satisfy my hunger.
- PAMAS Eatery is great and has a affordable place to eat also its affordable price.

How much is your allowance each day?

15%

85%

150 pesos 300 pesos Others

This graph shows that the majority of the respondents allowance is 150 pesos per day which is

84.60% and 15.40% is 300 pesos per day

 How much do you spend on your meal per day?

8%

92%

50-100 pesos per day 150-250 pesos per day Others

The graph tells us that the majority of the respondents spend 50-100 pesos per day for their meal.

Where do you prefer to eat? Canteen or Eatery?

- Because I think the food that is selling at the same canteen and at the eatery outside are

the same. But the eatery outside is budget friendly for the students like me.
- In my own opinion, I prefer eating outside the campus because its SULIT. There are

many options outside the campus and it has different promos such as unlimited rice and

drinks. The eatery outside the campus is also affordable.

Table 2

Projected Demand

Year Target Population Price Sales

2018 195,341 Php 65.00(5) Php 63,485,825
2019 195,341 Php 65.00(6) Php 76,182,990
2020 195,341 Php 65.00(7) Php 88,880,155
2021 195,341 Php 65.00(8) Php 101,577,320
2022 195,341 Php 65.00(9) Php 114,274,485
 Table 4

Projected Supply

Year Target Population Price Sales

2018 97,671 Php 65.00(4) Php 25,394,460
2019 97,671 Php 65.00(5) Php 31,743,075
2020 97,671 Php 65.00(6) Php 38,091,690
2021 97,671 Php 65.00(7) Php 44,440,305
2022 97,671 Php 65.00(8) Php 50,788,920