University of Luzon

College of Business Administration

Dagupan City

Case Study

Of

Sip N Slice

Submitted to

Ms. Sherryl Delos Santos MBA

Faculty of the College of Business Administration

In Compliance with the requirements of the subject LOGISTICS

MANAGEMENT

Submitted by:

Ruvie Anne F. Paredes

 University of Luzon
College of Business Administration
Dagupan City

I. INTRODUCTION

Sip N Slice is a cafe business of Ms. Ching and her sister where their main
products are pastries and coffee. They came up with the name Sip 'N Slice because
their goal is for their patrons to enjoy every sip of their blended coffee and slice
their own freshly baked cakes. Its operation started since December 2013. Their
starting capital was estimated up to P300, 000 including the equipments and
machineries used for the operation. Currently the entity’s gross income per day is
P3, 000 to P4, 000 as their minimum on days where customers are less and reaching
a range of P7, 000 to P 10, 000 as their maximum during peak days and hours
especially on school days. Sip N Slice is located at Burgos Extension Dagupan City.
 University of Luzon
College of Business Administration
Dagupan City

II. BODY OF REPORT

2.1 PROGRESS

Sip 'n slice was originally located at Robinson’s Place Calasiao in 2013, in
which they only offer coffee, cupcakes and cakes. Unfortunately the entity did not
succeed in Robinson’s Calasiao because they did not have enough customers to
begin within their early stage of operation and on top of that they were paying a
tremendously high amount of rent inside the mall.

After two years finding there was not much promise in their current
location, they decided to relocate their business having found a commercial space
not too big and not too small with affordable monthly rent in Dagupan City in the
third year of their operation. There they started in continuing their family business
with two (2) chairs and two (2) tables in a small room. After several months in its
third year of operation on Ms. Ching’s dedication to make their business cafe
known and continue, she decided to try promoting their business through social
media with a strong use of the social media called facebook, attracting customers
with affordable promotions such as “Buy 1 take 1”, “Buy 1 and get the second for
only Php1.00” and it is continuously trending in social media especially in facebook
catching the eyes of hundreds of potential customers.

On its fourth year of operation due to the innovative marketing strategy

which Ms. Ching pursued, Sip ‘n Slice was made known to many people and was
receiving a great number of customers attracting students at most. The promotions
were a huge hit especially that the geographical area of the cafe is surrounded with
 University of Luzon
College of Business Administration
Dagupan City

a number of schools. Now on their fifth year of operation they offer catering
services and events like birthdays, christenings and surprise anniversaries.

2.2 PLAN

Having a branch outside Pangasinan is one of their main and long term
visions. Aside from the branches that currently they are planning to obtain, They
are also continuously exploring varieties of drinks that they can offer to give variety
in their menu. They are also thinking of a way on how they will maintain their café
as a unique and on a trend café in Dagupan City.

2.3 PROBLEMS

The following are the common challenges they had and are still facing:

1. Competitors - They consider other coffee shops near their location as a

threat in the competitiveness of their entity but they are much confident that Sip 'n
Slice’s products and services are more favourable compared to their competitors.

2. The Place or Location - The location of the cafe is inconvenient in a way

that customers are not able to quickly identify the entity. It has a small narrow
entrance doorway.

3. Stock Control – There are times especially on peak days and hours of its
day to day operation experience a lack of supply. This prevents them to provide and
serve all the demands of their customers.
 University of Luzon
College of Business Administration
Dagupan City

III. SUMMARY

Sip n Slice Café has an innovative way in attracting its customers. They
advertise their products in “What’s up Dagupan” which is a page on facebook with
thousands of followers not only in Dagupan. Sip'n Slice is also known as the “Hugot
Café of Dagupan City” it is because of their unique way of showcasing their foods
with the so called “Hugot lines” attached on it. Also they give free access to their
Wi-Fi for customers to gain internet access as another marketing strategy of the
entity. They hope that customers would post pictures and positive feedbacks and
experiences on social media to advertise their cafe even more. Their café is not only
unique in terms of their food presentation but also with the coffee they serve,
because unlike other coffee shops, Sip n Slice has their own blend of coffee and
other drinks which gives them an edge against their competitors.

Sip n Slice wants to be a well known café where more likely students and other
customers can stay to chill and relax. They follow this aim because they believe
that customer satisfaction will lead them to the top. Like other coffee shops in
Dagupan City they started with just a minimal amount of equipment but as of now
Sip ‘n Slice has expanded into a whole lot bigger coffee shop with a variety of
drinks and food on their menu. They are also looking forward for expanding their
business outside Pangasinan in the coming years. Nothing can indeed stop Sip n
Slice Café’s progress and success in their growth and development.
 University of Luzon
College of Business Administration
Dagupan City

IV. CONCLUSION

Sip n Slice Café is well known for its unique serving of foods with hugot
lines because of that it is considered as the “Hugot Café” of Dagupan City, also
because of their own brew of their home made coffee, pastries, cakes, pasta’s and
even rice meals. Success is driven by customer taste and satisfaction as well as their
location and the ambiance that the coffee shop has. Competing against other
competitors is a never ending battle that Sip n Slice is facing with the growing
number of new coffee shops in Dagupan City but still Sip n Slice is earning an
increasing number of customers every year this is because most of the customers
of the entity are students and every year new batches of students has a chance to
get to know the cafe even more. This is because of the uniqueness and
competitiveness that they have shown especially through the innovative use of
social media as their marketing strategy. Sip n Slice Café is indeed very progressive
in the market yet even they cannot always predict customer behaviour. The
highlight of this case is the importance of understanding the consumer behaviour
and the factors affecting them because this is what leads a business to progress and
eventually to success. Also one of the things that Sip n Slice Café should consider
is to stay connected with everyone specially their suppliers maintaining good
relationship to have resources in keeping up and meeting the demands of their
customers.