Strategic Management

Executive Summary

Chickens are known as the most common, and probably the most populous bird species on earth.

That's certainly true in the Philippines where chickens outnumber Filipinos. The Philippines may

consider a “Fried-Chicken Nation”. As per Francis Isberto of Friendillion, chickens are probably the most

populous and most popular type of meat for most Filipino consumers today. Chicken is mild in flavor and

takes on mild salted juiciness. Chicken is relatively cheap and readily available. According to the article

of CNN PH last January 2017; the chicken population in the Philippines reached 175 million. Central

Luzon is the country's top chicken producer (35%), followed by Calabarzon (20%), and Northern

Mindanao (9%).

Max’s Restaurant chicken may consider one of the most popular chicken restaurant in the

Philippines. With their Brand Mantra of “the house that fried chicken built.", it has expanded in different

places nationwide and even outside the Philippines. Max’s Restaurant is owned and operated by Max’s

Group. Max's Restaurant has established itself as a household name in the Philippines, an institution, a

proud Filipino culture and continuing the tradition making fried chicken set by Maximo Gimenez and

Ruby Trota.

This Strategic Management Plan is a comprehensive plan developed to guide the company’s

marketing program and objectives for the incoming years. It aimed in boosting various possible ways in

preparing in any crisis that may affect the industry. It also aimed in boosting the brand to Filipinos

especially in the upcoming rises of millennials and gen z generation. With the shifting of taste and

culture as per the time goes by and generation goes by, this plan will help the company in terms of

making a strategic decisions in their marketing activities, adapting and being fit in today’s industry, and

especially to balance the customer’s expectation and company’s traditional making of their Filipino food

especially the company’s special, Max’s fried chicken.

 This Strategic Management Plan may include (Plans), as the company’s key components on

overall Business Plan and serves as a roadmap for annually developed work plans that detail the

specific tactics designed to improve the company’s marketing based on the mission, vision, and the

company’s desired output. This plan have been created by Yves Martin Gomez and Jacobina Budoso to

inform all the employees of the company’s objectives and direction towards the annually growth based

on the company’s standard. This comprehensive framework designed to guide the organizations efforts

to maintain, seeking for more opportunities and expand the whole business globally.

Company Background

Max’s Restaurant is owned and operated by Max’s Group which has 14 combined brands: 4 from

Max’s group and 10 from Pancake House. Max’s Restaurant started in 1945, after World War II. It all

began in Maximo Gimenez’s house in Quezon City. According to Max’s Restaurant history, Maximo is a

very friendly person, with his friendly personality, American soldiers come to Maximo’s house for a drink

and they are the one who insisted to pay their drink. Maximo grab the opportunity to open a café where

the soldiers could enjoy their drinks. Since the Americans missed two things in their country, specifically

fried chicken and streak; Maximo decided serve steak and fried chicken. With the help of her his niece,

Ruby Trota, who managed the kitchen and the one who make a special recipe for their chicken that fits

the soldier’s desired taste of fried chicken and became their instant favorite. Soon after her breadless

fried chicken recipe was born, eventually Filipinos started dining in Maximo’s house. Filipinos public

heard about the delicious chicken recipe and thus they came to the small restaurant and Max’s

Restaurant started recognized as “the house that fried chicken built.".

As one of the heritage brands in the Philippines, Max’s is considered as the go to restaurant for

celebrations and occasions. Max’s Restaurant is known as a family-oriented restaurant where the

company is focused on bringing every family together and promotes a lifestyle of a traditional Filipino

that is eating together with the family is one of the best family bonding activity because the company

believed that “the world is better when we come together”, according to the latest commercial of the

company.
 Max’s Restaurant wants the organization build on its success by having the commitment towards

maximizing the relationship of the customers as restaurant for the celebration place for any family.

Therefore, the company is pursuing not just on building and maintaining a strong customer service and

its friendly service but also adapting the Max’s culture on every employees itself by creating a good

foundation on the whole organization and treat every employees as a family. Employees can be

motivated to provide excellent service to customers by having a good treatment to the in every employee

of Max’s.

Strategic Focus and Plans

According to Max’s Group, Max’s Group’s vision, mission, and values bind its employees together

by providing a sense of purpose that enables each member of the organization to wholeheartedly

understand and fulfill its mission of building loved brands.

Vision

“To be the leading Filipino Company with brands most loved by 2025”, according to Max’s Group. The

primary vision of the company is to be the most loved Global Filipino Company since the company

already started to expand the business outside the Philippines.

Mission

We build loved brands, according to Max’s Group. Max’s. With the goal of delighting its customers, it

continually searches for partners who share their passion and vision to consistently serve new

customers in new territories fresh, genuine, quality food and a great dining experience in different

formats.

Values

 We do it with love, one customer at a time

 We do it right the first time

 We do it better - by being genuine, thoughtful and innovative

 Max’s Group strongly advocate the quality of service not only in their customers but also in every

employee that is part of the organization. The company positioned the whole organization to be

prepared at all times and providing the best quality service by taking pride in what the company do to the

customers and to be part of the stories in each and every families.

Goals

During the next 6 years starting now, Max’s Group seeks to achieve the following financial and

non-financial goals:

Financial Goals:

 Obtain financing to expand globally and gain more business partnership.

 Increase revenues each year

 Continuing to pledged monetary assistance, donations, and sponsorships to provinces affected

by disaster or calamity to make a positive impact and publicity to the community.

Non – Financial Goals:

 Introduce new foods and products to help the business in expanding.

 To continually creating a brand awareness to the next generation specially to the millennials and

gen z.

 Reposition Max’s brand as a young brand that can be the go to destination for celebrations and

occasions to millennials.

 Develop a successful advertisement especially in social media

 Quality and Fast approach service

 Maintaining the commitment and loyalty of Max’s employees.

 Maintaining the relaxing environment and not to be branded as a fast food restaurant.
 Core Competency and Sustainable Competitive Analysis

Max’s Group seeks to use its core competencies to achieve a sustainable competitive advantage

by continuing and maintaining the traditional making of the Philippine’s favorite friend chicken since 1945

as the company’s products have been part of the Filipino’s culture in which competitors cannot provide

the same customer quality and service to the customers that Max’s Group does. By having 14 brands

and different product offerings, Max’s Group still looking for more opportunity and preparing the whole

organization when the time and generation goes by to achieve a competitive customer satisfaction and

loyalty by 1.) offering a good quality and maintaining the standard of their chicken whose image is

recognizable among consumers; and 2.) create a sense of community and a wide number type of

customers who are purchasing the products and avail the service. The company intends to build on

these competencies through marketing efforts that fits to the personality and culture of millennials and

gen z that can increase the number of products offered, expand the business globally and create a

brand awareness internationally.

Situational Analysis

The SWOT and PESTLE Analysis will illustrate the company’s status and position in the

marketplace. The analysis below shows the internal and external factors affecting the marketing

opportunities of Max’s Group.

SWOT Analysis:
Strengths: Weaknesses:

 Established and strong reputation of brand  Dynamic Market Environment

 Largest casual dining restaurant company in
the Philippines
 Employee commitment and properly
oriented about the company’s standard
 Different variety of products (including the
other brand)
 Properly oriented and experienced
management and board
 Lack of product motivation
 Lack of advertisement that will fit to
millennials and gen z
 Brand position for the millennials and gen z
consumer (branded as fast food restaurant
instead of fine dining restaurant)
 Employee management during customer
traffic
Opportunities: Threats:
 To expand more restaurant in any of 5  If the brand does not recognize by the next
countries that consume the most chicken. generation (millennials and gen z)
(Australia, US, Argentina, Israel, and UK
according to taste inc.)  If the brand positioned as fast food instead
of fine dining for celebrations and
 To have more business partnership occasions.
 Establish brand recall, brand equity and
brand awareness to millennials and gen z
 Opportunities to widen the number of
consumer type and target market

PESTEL Analysis:

Political According to Kiesha Frue, Trends can affect the

industry. Max’s is known by providing Filipino food
and we know that most of Filipino is not considered
as a healthy food. Current policies push and
encourage the public to be more conscious on
health.
Economic Max’s Group already operating globally and
presence that can affect the sales of the company
by the changes inflation and exchange rate.
Unemployment rates can also be affected the
whole business since Max’s is known as employee
oriented.
Social Being in a food industry, fine dining trends can shift
on what the consumer’s looking for. As mentioned
in Political factor, most of the countries starting to
embrace the health conscious mentality.
As time goes by and generation goes by, culture is
also goes by. Every company have to prepare the
whole organization on how to handle the new
upcoming consumers type and how to handle the
upcoming generation of millennials and gen z.
Max’s is known and considered as an old
restaurant in the Philippines, and the company
need to reposition the brand as a young brand that
fits to the new generation’s preference.
Technological Technological changes can make a big impact and
big changes that can affect the standard and whole
process of the business. Technological can provide
a competitive advantage especially we’re in the
world of digital, gadgets, and technology. Some
restaurants starting to implement the ordering
process through the use of large touch screen to
avoid customer traffic inside the store.
Environment Environment factors already affected almost all of
the food industry around the world. Unlike before
that the restaurants can use plastics and
styrofoam, most of the restaurants now including
the Max’s starting to change all of their equipment
and materials through the use of paper which is
more expensive compare to plastic and styrofoam.
Legal Tax obligations and employment standard are the
factors that the company has to take into
consideration.

Industry Analysis:

The objectives of Industry Analysis is to understands how the Max’s Restaurant industry structure

drives the competition in the market which determines the level of industry profitability. This section

seeks to assess the industry attractiveness and to use evidence on changes in industry structure to

forecast future profitability and marketing efforts.

As of now, Max’s Group have 14 brands. According to ABS-CBN, Max’s acquires Pancake House

last 2013 and after the time goes by Pancake House buys Max’s group firm for P4B. The swap of share

deal aims to make the brand as the nation’s largest fine and casual dining restaurant chain according to

Rappler.

According to Mia Marci, “Max’s Group acquired Pancake House from the Lorenzo Group for PHP

3.5 billion, a move that was considered a milestone in Philippine restaurant history. Barely six months

into the year, the story continues through a share-swap deal. Pancake House has bought Max’s Group

of Companies at PHP 4.05 billion pesos, making it the largest local casual dining restaurant chain.”. The
Company’s earnings per share percentage is 3.57% which is a good fundamental and status for the

company.

Max’s brands including Max’s restaurant, Max’s Bakery, Krispy Kreme, and Jamba Juice while

Pancake House include its store Pancake House, Yellow Cab, Teriyaki Boy, Singkit, Kabisera, Dencio’s,

Le Coeur De France, Sizzling Pepper Steak, Chicken Rice Shop, and Maple.

Chicken population is greater than pork. According to Philippines Statistics Authority, “Total

chicken production (439,956 metric tons) during the first quarter of 2018 increased by 4.93

percent compared to previous year’s level of 419,303 metric tons. Of the total chicken production, 79.89

percent was contributed by the broiler chicken type. Central Luzon was the country’s top chicken

producer with estimated production of 162,321 metric tons. Central Luzon, CALABARZON and Northern

Mindanao comprised the top three (3) chicken producers in the country and accounted for 63.70

percent of the total chicken production.”

In effect of having the chicken industry increases year by year, there’s a lot of competitors comes

in and trying to grab the opportunity based on the continuous increasing of chicken’s demand. Max’s

Group is in the top one among the chicken industry companies in the Philippines with $4.9M revenue

according Owler.

The millennials are a generation of modern people. Described by the control and evolution of

technology in their regular lives, as well as values, life backgrounds, motivations, and common buying

habits. According to Wayne Hoyer, Deborah Macinnis and Rick Pieters, in terms of brand loyalty, the

study shows that consumers can get to access internal information about brand names adopted early in

life more fast and effectively than brand names obtained later. Therefore, marketers looking to establish

early brand awareness and preference among young millennial consumers, working toward having that

brand loyalty continue into adulthood. Millennial consumers discovered incredible confidence and belief

in the brand names of their desire product because of multiple information and advertisement that they

can see in their phones knowing that the millennial is born were the internet and computers starting to
rise. Max’s is known and considered as an old restaurant in the Philippines, and the company need to

reposition the brand as a young brand that fits to the new generation’s preference.

Competitors
According to Owler

Primary Competitors:
 Classic Savory
 Shakey’s
 Kuya J

Secondary Competitors
 Cyma Restaurant
 Chook’s to go
 Ilutrado
 Pamana
 Italliani’s

Market Trends

Millennials and Gen Z consumer are staring to rise and the market must evaluate and prepare

themselves on the adjustment for the new generation and consumer behavior that is coming. Since

we’re in the generation of technology and gadget, online platform is there for the operation. This is to

reach more younger demographic and to avoid customer traffic and parking in the store. Customized

Food Delivery is one of the key in using this strategy. According to Andrew J. Masigan, Online delivery

like Food Panda, Grab, Honestbee is already part of every restaurant’s marketing strategy.

Every restaurant are adjusting on their target market’s needs and wants, some restaurant

adapting the other style of food they are serving and some restaurant thinking about new product and

food to be offered as their product development. According to Andrew Marasigan, “Cuisine curiosity and

authenticity. A recent market study done by De La Salle University revealed that Filipinos are only willing

to patronize a restaurant offering non-mainstream cuisine (e.g. Latin American, European, or

Caribbean)”. Some restaurants are forced to think a new food and products to be offer, some restaurants

thinking about different foods in other country that they want to bring to their menu. For example, most of

millennials right now are so fanatic with Korean culture. It is because of “K-Drama” they’re watching and

“K-Pop” they’re listening. Some restaurants creates new product offering with their best seller food with

the mix of Korean style ingredients.

“Increasing popularity of artisanal coffee and gastropubs.” according to Andrew Marasigan. Max’s

restaurant is known for celebrations and a family oriented restaurant, coffee is considered as a

conversation starter. Max’s offers juice, softdrinks, and water as their drinks option and grabbing the

coffee trend to include in their menu make some impact to the company’s sales.

According to Richard Taylor, “Many ovens and other pieces of equipment now feature

programmable settings, so you can add the exact temperature and cook time for your recipes. This

helps reduce user error and makes your kitchen more efficient.”. Many restaurants are starting to find

and to purchase a high-tech equipment and programmable equipment for them to be efficient and

effective in their process. It also helps the company to be more focus in their customer because the

equipment is allow control and to operate by itself from a distance.

“Leveraging technology, processing information quickly, and communicating more efficiently are

ways to use IQ to close the seller-buyer gap with Millennials.” according to Ryan Jenkins. Time, insight

and collaboration is what matters for younger generation consumers. Being responsive to their concerns

using social media is one of the best strategy to keep them loyal and get more customers to be

interested to the brand. Providing an information and insight that they can’t research on their own

because young generations wants an instant reply in their social media accounts. (ACTIVE SOCIAL

MEDIA CUSTOMER SERVICE)

According to Erica Sweeney, 76% of consumers and 85% of millennials, defined as people age

18-34, say they’ve purchased a product or service after watching a video. Most of the company makes

their own video about their brand and post it in social media to create an awareness. The trend for
today’s generation is to conduct a video marketing with a content and story telling whether it is an

inspirational story or entertaining video. (EMPHASIZE FAMILY AND FRIENDLU ORIENTED FOR

CELEBRATIONS)

Product Market Focus

This section will show the marketing strategies and product objectives of Max’s Group including

the target market and positioning.

Sources:
 A Fried Chicken Nation
Francis Isberto, August 2019
http://friendillion.com/a-fried-chicken-nation/

 10 reasons Pinoys can't let go of chicken

Avigail Olarte, CNN Philippines, August 2017
https://cnnphilippines.com/news/2017/08/18/Chicken-bird-flu-Philippines.html

 About Max’s Restaurant

https://www.maxschicken.com/page/about-us

 The world is better when we come together

Max’s Restaurant commercial, July 2019
https://www.youtube.com/watch?v=_9Umlz-LFHk

 Hello. Welcome to Max’s Group

Max’s Group
https://www.maxsgroupinc.com/

 Max’s restaurant research paper

https://studymoose.com/maxs-restaurant-research-paper-essay

 5 countries that consume the most chicken

https://www.tasteinc.com/five-countries-consume-chicken/

 What more do companies get out of CSR

https://nolisoli.ph/15749/company-csr-benefits/

 Pancake House buys Max’s group firms for P4B

https://www.rappler.com/business/industries/176-food-and-beverage/62071-pancake-house-
aqcuires-maxs-firms

 Max’s group acquires Pancake House

https://news.abs-cbn.com/business/12/20/13/maxs-group-acquires-pancake-house

 Pancake House Buys Max’s Group, Now Largest Restaurant Dining Group in the Philippines
Mia Marci, 2019.
https://www.pepper.ph/pancake-house-group-now-largest-restaurant-dining-group-philippines/

 Philippine Statistics Authority, 2018

http://www.psa.gov.ph/content/chicken-situation-report-january-march-2018

 Owler
https://www.owler.com/company/maxsrestaurant

 Consumer Behavior
Wayne Hoyer, Deborah Macinnis, and Rick Pieters, 2017
 Numbers don’t lie
 Andrew Marasigan, 2019
https://www.bworldonline.com/trends-in-the-food-industry/

 Top Food Service Trends 2019

Richard Taylor, 2019
https://www.webstaurantstore.com/blog/2214/top-foodservice-trends.html

 Study: 85% of millennials have purchased a product after watching a video

Erica Sweeney, 2018
https://www.marketingdive.com/news/study-85-of-millennials-have-purchased-a-product-after-
watching-a-video/541594/

 5 Need-To-Know Characteristics of the New Millennial Buyer

Ryan Jenkins, 2019
https://www.inc.com/ryan-jenkins/selling-to-millennial-buyers-5-things-you-need-to-know.html
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