Republic of the Philippines

City of Taguig
Taguig City University
Gen. Santos Avenue, Central Bicutan, Taguig City

Zagu
A Case Study

Presented to the
College of Business Management

Presented by:

Almenar, Jerome M.

May 14, 2019

Company Name: Zagu
Established Date: April 1999
Contact info: Address: #52 West Capitol Drive, Bo. Kapitolyo Pasig City, Philippines

Telephone Nos. Trunk Lines:

(632) 687 - 4432 , 687 - 4430
(632) 687 - 4404 , 687 - 0140

For Dealership you may contact

AUTHORIZED DEALER DEPARTMENT at this Nos.
Local: 150 OR 113
Mobile Number: 0918 - 8889248 (SMART) 0917- 8098043 (GLOBE) 0923-4563586
(SUN)
Website: http://www.zagushakes.com/

Mission
 To provide the best quality, most innovative and reasonably priced products in
the beverage industry.
 To be the leader in our industry attained by a well-planned expansion through
retail outlets and wide product distribution.
 To continuously generate awareness, interest and desire for our products
resulting in frequent / repeat purchases.
 To establish Zagu as a highly regarded international brand name..

Vision
Our Company bears the vision of providing fun, deliciously appetizing, uniquely
enchanting food and beverage products while maintaining our commitment to
uncompromised quality at economical rates with the heartening purpose to cater to
society’s needs, tastes and preferences; rather than simply convincing our customers to
try and like whatever products we develop.

Company Objectives
 To promote, protect and maintain its image at all times.
 To make sure that each employee provides quality products and offer excellent
service to all customers.
 To make sure that all outlets are properly laid out, maintained and profitable.
 To be the leader in our industry attained by a well-planned expansion through
retail outlets and wide product distribution.
 To continuously generate awareness, interest and desire for our products
resulting in frequent / repeat purchases.
 To establish Zagu as a highly regarded international brand name..
Company Principles
Low key – the company projects a low profile image, by being modest in spite of its
success and recognition.

Company Principles
 Proper attitude is more important than skills.
 Be open to Constructive Criticisms.
 In life, there will always be problems. It is a continuous learning process wherein
we learn to constantly adjust.
 The Company will not adjust to anybody because the company believes in
protecting rather than sacrificing the welfare of the majority.
 Mutual respect and understanding is expected from each one.
 To make work easier for the employees.

About
It took several months of experimentation, product sampling and planning before the
first ZAGU store was launched in April of 1999. ZAGU was pioneered by a young
enterprising lady with a degree in Food Science from the University of British Columbia
in Vancouver, Canada.
To this date, Zagu has blended millions of pearl shakes, a pretty good number for
something that was widely predicted as a passing fad. Now, ZAGU has grown from tiny
kiosk to current network of over 500 stores nationwide and in UAE. Zagu has also
gained recognition locally through awards such as the National Consumers Quality

History
From these humble beginning to its present success, ZAGU has proven that is not a
passing fad, 85% of our current stores have been occupying the same leased space for
more than three years. ZAGU foods can be found in malls, supermarkets and roadside
location. Behind the success of every ZAGU store is our professional management
team and dedicated employees committed to putting the customer first and achieving
excellence in everything.

Awards
From these humble beginning to its present success, ZAGU has proven that is not a
passing fad, 85% of our current stores have been occupying the same leased space for
more than three years. ZAGU foods can be found in malls, supermarkets and roadside
location. Behind the success of every ZAGU store is our professional management
team and dedicated employees committed to putting the customer first and achieving
excellence in everything.
 I. Title of the Case Study:
Zagu

II. Point of View:

Zagu provides fun, deliciously appetizing, uniquely enchanting food and
beverage products that I need to make a study
III. Time Context:
May 2019 to 1 year or 2 year time

IV. Statement of the Problem:

Explaining how Zagu can innovate and not lose its relevance

V. Statement of Objective
1. To elevate the status of Zagu Brand
2. To attract emerging markets and recapture the interest of its former
customer
3. To introduce new offerings
4. To make it appeal to health- conscious customers
5. To adapt change s that would promote environmental friendliness

VI. Areas of Consideration (SWOT)

Strength  Superior product quality
 Affordable offerings
 Established brand names
Weaknesses  Limiting brand name
 Unhealthiness of the product
 High usage of disposable cups
Opportunities  Global warming
 Consumer spending habits
 Improving economy
Threats  Influx of substitutes- both local and international
 Malicious rumors
 Health – consciousness trends
 Changing customers demographics

VII. Assumption
The purpose of Zagu is to cater to society’s needs, tastes and preferences;
rather than simply convincing the customers to try and like whatever products
we develop. So it is good if the business got to consideration that giving more
people more choices or options and giving more innovated products on what do
they want rather than just sticking on what they had and the demand of customer
would get lower.
VIII. Alternative Course of Action (ACA)

Weakness no. 1Limiting brand name

ACA1: status quo
ACA2: augment product and service, line stretch upward, and leverage on
existing brand equity
ACA3: internet marketing

Weakness no. 2: unhealthiness of the product

ACA1: offer healthier alternatives
ACA2: limiting unhealthy ingredients
ACA3: removing unhealthy ingredients

Weakness no. 3: high usage of disposable cups

ACA1: like city bike rental for cups
ACA2: changing cups into biodegradable cups
ACA3: making an edible cup
IX.
ACA1: augment product and service, line stretch upward, and leverage on
existing brand equity
Advantage: it will address that much need more innovations potentially for brand
image
Disadvantage: requiring huge capital, risky, and more intensive research and
development

ACA2: offer healthier alternatives

Advantage: it would help and improve nutrition and overall health
Disadvantage: higher cost to stay healthy and keeping a healthy body weight
through diet

ACA3: changing cups into biodegradable cups

Advantage: lesser polluted and environmental impact
Disadvantage: is required to ensure proper recycling/processing of
biodegradable plastic bags and if they aren’t disposed properly and mix with
regular plastics, they become contaminated and cannot be used anymore
X. Conclusion and Recommendation

Conclusion:
I therefore conclude that this study about innovating and knowing the
problems within company Zagu, it would be useful and helpful in the company
and it could help the business to grow, and for the customer they would be more
satisfy and they would even more patronize the product.

Recommendation:
I recommend that changing the cups into a biodegradable cups would just
not help the customer health and the business image but also help the
environment impact. Biodegradable plastic had proven that it got lot of potential
to help the environment that could totally outweigh the cons making it a better
choice compared to plastic that been used traditionally.