MARKETING

ASPECT
I. INDUSTRY ANALYSIS

The snack industry is extremely profitable and is a business full of different sales
opportunities. A snack is a small service of food and generally eaten between meals. Snacks come
in a variety of forms including packaged snack foods and other processed foods, as well as items
made from fresh ingredients at home.

Snack foods are typically designed to be portable, quick, and satisfying. Processed snack
foods, as one form of convenience food, are designed to be less perishable, more durable, and
more portable than prepared foods. They often contain substantial amounts of sweeteners,
preservatives, and appealing ingredients such as chocolate, peanuts, and specially-designed
flavors. One of the best examples of snack food is doughnut, it is sometimes eaten before meals
but now it can be also a replaceable for mealtimes.

Doughnut market are consisting of two types which is doughnut with holes and without
holes. Both type of doughnuts is having a different flavor and fillings. The company choose to
produce and sell a doughnut holes with a marmalade inside with a vision of tasting a delicious
snack without focusing on the number of calories you might take. Through this vision it will be an
advantage for the company to compete with the existing industry. The doughnut producers that
is present in the industry are Dunkin’ Donuts, Mister Donut, J.CO Donuts, Krispy Kreme, GoNuts
Donuts and other small-scale doughnut producer.

II. COMPETITOR ANALYSIS

With the aid of the market survey, the company identified the competitors. Competitors
are divided into two types namely as direct competitors and indirect competitors. Our direct
competitors are the doughnut holes manufacturers and stores. While, the company’s Indirect
competitors are the manufacturer or stores of different type of snacks. The competitors already
established their names within the market which make them renowned.

The company founded a five famous doughnut producer. Through this, the company have
known who is their direct competitors and what are their product name for doughnut holes. The
data below shows the list of it with their year established.

List of Direct Competitors

Product Name of Year Established in the

Brand Doughnut holes Year Established Philippines

Dunkin’ Donuts Munchkins 1950 1981

Mister Donut Smidgets 1955 1982

J.CO Donuts J.Pops (Baby Donuts) 2005 2012

 Krispy Kreme Doughnut Bites 1937 2006

GoNuts Donuts GoGos 2003 2003

Table 1.1: List of Direct Competitors

Prevailing Prices of Direct Major Competitors

Brand Product Name of Doughnut holes Price

Munchkins (Classic) Php 5.00

Dunkin’ Donuts
Munchkins (Premium) Php 8.00

Mister Donut Smidgets Php 8.00

J.CO Donuts J.Pops (Baby Donuts) Php 10.00

Krispy Kreme Doughnut Bites Php 11.00

GoGos Bites Php 8.00

GoNuts Donuts
GoGos Stuff-its Php 10.00

Table 1.2: Prices of Doughnut holes

III. MARKET ANALYSIS

Market Segmentation

Market Segmentation is the process of dividing a market of potential customers into

groups, or segments, based on different characteristics. Segmentation allows the firms to better
satisfy the needs of its potential customers.

For Geographic Segment, the company chooses the location that have high rate of
population of people.

Secret Gems market is segmented as demographic for the reason that it concerns are age.

IV. MARKET DEMAND

Historical Demand

Forecasted Demand and factors considered in Preparing the Projection

Current and Potential buyers

Location of Potential Buyers

V. SUPPLY ANALYSIS
 Historical Supply

Major Producers of the Product

Production Capabilities and Brands of Current Producers

Forecasted Supply

VI. MARKETING PROGRAM

Present Marketing Practices of the Competitors

The competitors are Dunkin Donuts, Mister Donut, Krispy Kreme, J.CO Donuts, GoNuts
Donuts. All these doughnut producer and stores are making their strategy based on the 4Ps, price,
product, promotion and place. The 4Ps of marketing is a model for enhancing the components of
your "marketing mix" – the way in which you take a new product or service to market. It helps
you to define your marketing options in terms of price, product, promotion, and place so that
your offering meets a specific customer need or demand. Likewise, all of them also doing
franchising, it is a continuing relationship in which a franchisor provides a licensed privilege to the
franchisee to do business and offers assistance in organizing, training, merchandising, marketing
and managing in return for a monetary consideration. Franchising is a form of business by which
the owner (franchisor) of a product, service or method obtains distribution through affiliated
dealers (franchisees). They also do promo bundles, sales and special doughnuts in different
occasions.

Dunkin Donuts’ having a marketing practice that is related to social media campaign. They
are especially masterful in their use of twitter. One of their campaign is if you tweet a picture of
yourself eating Dunkin Donut you will be given a free doughnut. They use the Forbes acclaimed
AIDA advertisement strategy. In marketing, AIDA means Attention, Interest, Desire and Action.

One of Mister Donut’s marketing practice is focused on their products. They add special
flavors. They used the original Filipino taste on their doughnuts like their “Pinoy Paboritos”
strategy and their “Throwback Doughnuts” featuring the old time favorite Filipino sweets of
children.

Krispy Kreme’s marketing practice integrated an important principle of their business and
use it constantly: the community. They don’t always wait for the community and the customers
to come to them. They go to where their potential customers are. They market with a movement
outward, not simply setting up shop and saying “that’s that” and running an ad in the paper. Their
marketing strategy achieves the crucial triangle of “Message, Market, Moment.” It also reflects a
classic hustle mentality that every business owner needs to tap into. They do it by networking,
building fund raising efforts, announcing clearly the optimal time to purchase and they offer free
gifts, discounts and product incentives to their customers.

J.CO focused their marketing strategy on the 4Ps marketing mix. Price which refers to how
and how much a client will be charged. The product can be anything from cheap to a luxury item.
It can be paid for all at once or divided into monthly payments. There are also other strategies,
such as psychological price, pay what you’d like, auctions and many more. Place which can be
online and physical stores. While their product is composed of 26 different flavors. Promotion,
they usually use social media network to advertise their product in order to create a stronger
consumer demand.

GoNuts Donuts focus their market to the young kids, their personality is fun and colorful
and this is what GoNuts Donuts apply on their donuts decoration and flavors for it will attract the
kid’s attention not only kids but most adults also prefer donuts that is well decorated. They also
made a lighter, softer doughnut with a distinct “melt-in-your-mouth”.

Selling Organizations……

Product Name

Secret Gems was the product name because the product itself is a doughnut hole with a
fruit marmalade inside. This is basically like a doughnut holes that are usually deep fried from a
flour dough, in a ball-shaped and bite-sized form. Inside of every doughnut is a fruit marmalade,
a fruit preserve made from the juice and peel of fruits boiled with sugar and water. Wherein if
you get Secret Gems’ Doughnuts you will never know the marmalade inside until you bite for it.
The “gems” was the marmalade inside which is a secret thing of every doughnuts. To add
attraction to the potential customers, the company decided to name its different flavors of
doughnut holes as follows:

 Secret Apple Gem

 Secret Mango Gem
 Secret Pineapple Gem
 Secret Strawberry Gem
 Secret Kiwi Gem
 Secret Melon Gem
 Secret Orange Gem
 Secret Banana Gem

Product Label

The product label is printed on the paper box packaging. It indicates the company
name and what flavors of the product the customer has chosen. As well as other
important information to distinguish the product.

Packaging Strategy

Packaging is the product`s dress. It is the protector of the product within and one way of
attracting customers. Secret Gems will be packed in a cylindrical shape, and is made up of light
 materials. It is closed to protects the product not to contaminate. Every packaging contains a half
dozen of Secret Gems Doughnuts.

Promotional Advertising Schemes

Will you still bite a doughnut even you don’t know what’s the fillings inside? Definitely
Secret Gems will let you to experience an excitement and in a way a little bit nervous. But then,
Secret Gems will assure you that every bite of doughnuts will bring you satisfaction.

Having a larger demand on younger ages, the company added some thrill on eating
doughnuts by using an insert coin machine. The fillings of your food will depend on your luck. You
can experience it in a very low price. You will experience fun while eating.

Possible Marketing Problems and Solutions

IX. MARKET GAP AND MARKET SHARE

X. SCOT ANALYSIS

•Ease of purchase •Direct and Indirect

•Having good location Competition
•Uniqueness of the •Limited menu
product

STRENGTH CHALLENGE

OPPORTUNITY THREAT
•Expand the
XI. market and menu
PORTER’S •Target the health •Shell life of Product FIVE-
segment •Tight Competition
FORCES
•Internet Advertising
MODEL
 Porter Five Forces is a holistic strategy framework that took strategic decision away from just
analyzing the present competition. It is also for understanding the competitiveness of your business
environment, and for identifying your strategy's potential profitability.

Competitive Rivalry

Snacks i

Bargaining Power of Buyers

Bargaining Power of Suppliers

Threat of Substitute Products

Threat of New Entrants