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A Strategic Management Paper Presented to

The Faculty of College of Business and Accountancy
BS Accountancy and BS Accounting Technology
National University
In Partial Fulfillment of the

Final Requirements for the course
BUSINESS POLICY STRATEGY
Presented by:
CASTRO, JARROD DAVID

DUARTE, ANGELICA
GADIN, MAE JULIET PAZ
NOCHE, MARIA RAIN CHARIZ
Presented to:
MS. ARLENE SAN PABLO
April 2019
A STRATEGIC MANAGEMENT PAPER ON SAVEMORE
Table of Contents
CHAPTER I – EXECUTIVE SUMMARY .................................................................................................. 4

CHAPTER II – COMPANY BACKGROUND............................................................................................ 5
CHAPTER III – COMPANY’S VISION AND MISSION .......................................................................... 6
CHAPTER IV – EXTERNAL ANALYSIS ................................................................................................. 8
Economic Developments .......................................................................................................................... 8
Socio-Cultural, Demographic Trends, and Lifestyle Changes .................................................................. 8
Technological Developments.................................................................................................................... 9
Ecological Aspects .................................................................................................................................... 9
Industry Analysis .................................................................................................................................... 10
Competitors Analysis .............................................................................................................................. 11
Competitive Profile Matrix ..................................................................................................................... 12
External Factor Evaluation (EFE) Matrix ............................................................................................... 13
The Five-Forces Model of Competition.................................................................................................. 14
CHAPTER V - INTERNAL/ COMPANY ANALYSIS ............................................................................ 16
Three-Year Revenue/ Sales Review ....................................................................................................... 16
Country’s Biggest Food Retail Chain ..................................................................................................... 17
One-Stop Shop ........................................................................................................................................ 18
SM Bonus ............................................................................................................................................... 18
Convenient Location ............................................................................................................................... 18
INTERNAL FACTOR EVALUATION (IFE) MATRIX....................................................................... 20
VI - STRATEGIC FORMULATION ......................................................................................................... 21
STRENGTH-WEAKNESSES-OPPORTUNITIES-THREATS (SWOT) MATRIX ............................. 21
STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) MATRIX ........................... 22
QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM) ....................................................... 25
VII - OBJECTIVES, STRATEGY RECOMMENDATION AND ACTION PLANS ............................... 27
Recommended Business Strategies ......................................................................................................... 27
CHAPTER VIII – STRATEGY IMPLEMENTATION ............................................................................. 29
Action Plans and Programs ..................................................................................................................... 29
Castro, Duarte, Gadin, Noche Page 2

ACTP01 Ms. Arlene San Pablo
CHAPTER IX - STRATEGY EVALUATION, MONITORING AND CONTROLLING ....................... 31

REFERENCES ........................................................................................................................................... 32

CHAPTER I – EXECUTIVE SUMMARY
Savemore has built a credible reputation as a retail market in every community
nationwide. It has also established a very close working relationship with their customer that
they are able to provide quality products and excellent service to their customer.
Savemore target market are the general public that are in a small community or in
barangay. According to Sanford Marketing Corp., SM Retail’s subsidiary that handles the 174
Savemore stores across the country, posted revenue amounting to Php 41.1 billion in 2016.
Savemore’s major competitor is mainly Puregold Jr. or Puregold Extra which also the same
category or a neighborhood retail store in the Philippines.
In both internal and external environmental situational analysis was made for Savemore.
It was found out that their major strengths are being part of the Country’s biggest Food Retail
Chain, one-stop shop, convenient location and having an excellent customer service that makes
consumers satisfied. On the other hand, Savemore’s major weaknesses are because of some
items’ prices are a little bit higher compared to other supermarkets and some customers
complaints. In addition, Savemore’s opportunities include increasing population in the
Philippines and health conscious consumers while credit card frauds as their major threats.
By using matrices to conclude suitable strategy to attain Savemore’s vision “To be the
lifestyle brand of choice leading in every community we serve.” Financial and strategic
objectives, business and organizational strategies, action plan and programs and balances
scorecard are further recommended. A proposal for change is herein established to hopefully
help in developing the company.

CHAPTER II – COMPANY BACKGROUND
Sanford Marketing Corporation, commonly known as Savemore Market, is an affiliate of

SM Markets. In the year 1998, Savemore opened its first ever branch in Riverbanks Mall,
Marikina and as of to date, it has 195 existing branches and 15 more branches to open at the end
of 2019 nationwide.
SM Food Retail has three store formats which includes SM Supermarket, SM
Hypermarket and Savemore that offer products and services that focus on quality, affordability
and convenience. Savemore is also the SM's fast expanding vehicle to introduce organized retail
in areas like in small communities or in barangay.
Savemore Market is a chain of neighborhood grocery stores located outside SM Mall to
bring the SM shopping experience closer to where shoppers live and work. Savemore Market
offers a more convenient way to shop, as it provides a wide variety of products including a full
line of groceries and a wide range of fresh meat, seafood, fruits, vegetables and ready to cook
items. The compact size of Savemore store makes it easier for customers to complete their
shopping activity in a shorter amount of time. Savemore market is a clean and air-conditioned
environment. Their tagline is “Here to Serve!” As it takes pride in excellent customer service and
providing shopper’s daily needs. Savemore’s regular business hours is from 8am-8pm while their
regular operation hours start from 7am-9pm.
Savemore utilize its people’s assets on its maximum use. In every branch or store of
Savemore it consists of forty-eight (48) employees and their management team comprises of one
manager and two supervisors. Offering the convenience of a first-class indoor wet market,
groceries and general merchandise store, Savemore Market caters primarily to budget-
constrained households by offering lower-priced items, supported with the strong management
team, reputable name or strong brand, and aggressive marketing functions, these enables them to
get approximately 500 customers or transaction counts per day leading to increase profit or
greater revenue for them.
Savemore also offers additional services like ATM banking, bills payment, remittances,
money exchange, pharmacy, and even laundry services in select outlets, ensuring the one-stop
shopping convenience that the SM brand is known for.

CHAPTER III – COMPANY’S VISION AND MISSION

The vision statement of Savemore Market is as follows:
“To be the lifestyle brand of choice leading in every community we serve.”
On the other hand, the mission statement of Savemore Market is as follows:
“We deliver world class, relevant products and services which are accessible, affordable,
aspirational and fashionable. We do this by partnering with our suppliers in a fair
manner, establishing best practices in developing and growing our talents, improving the
quality of life in the community that SM partners with.”
Using Fred David’s evaluation matrix of mission statements, a table below is used to evaluate
Savemore Market mission statement:
Components Yes No
1 Customers 
2 Products/Services 
3 Markets 
4 Technology 
5 Concern for Survival, Growth, and Profitability 
6 Philosophy 
7 Self-concept 
8 Concern for Public Image 
9 Concern for Employees 
Recommended mission statement for SaveMore is presented below:

Our Mission is to be the leading retail store in the Philippines and to provide products, services
and business opportunities to every community in the aid of innovation and technology.
Offer products and services that focus on quality, affordability and convenience.
We establish lasting relationship with our customers, suppliers, and business partners. That
always Here to Serve!
We strive to promote the personal and professional development of our employees.
We commit profitable results to the stockholders.

Using Fred David’s evaluation matrix of mission statements, a table below is used to evaluate the
recommended Savemore’s mission statement:
Components Comment/s
1 Customers the community. Also, it is mentioned that it is in their mission to
build a good relationship with their business partners
2 Products/Services “offer products and services that focus on quality, affordability
and convenience”. They do not only sell products, but they also
provide quality service to customers, stockholders of the
company, and their business partners.
3 Markets Savemore operates more than 195 stores nationwide. Its
target market is the general public.
4 Technology aims to provide services and products with the aid of
technological advancement and growth and innovation.
5 Concern for Survival, with the successful profitability and progress of their
Growth, and Profitability stockholders and the good bond they establish with their
business partners, it will lead to their own advancement
6 Philosophy “Here to serve!”
7 Self-concept Improving the quality of life
8 Concern for Public Image To establish a relationship with its customers by improving
the quality of life in the community and that is the general
public
9 Concern for Employees establishing best practices in developing and growing our
talents

CHAPTER IV – EXTERNAL ANALYSIS
Economic Developments
As of now the latest data on family expenses of Philippine Statistics Authority (PSA) is
the 2015 Family Income and Expenditure. It showed that the average annual income of Filipino
families ₱267,000 with an estimation of ₱22,000 average monthly income.
PSA also has data regarding the 2018 Household Final Consumption Expenditure at
current prices. The Filipino mainly spends on 12 areas and they mostly spend for food and non-
alcoholic beverages which takes 42.60% of the total expenditure. Next to the food and non-
alcoholic beverages is the miscellaneous and goods services (12.79%), then the utilities
(11.96%), furnishing, household equipment and routine household maintenance (11.14%),
education (4.26%), restaurants and hotels (4.12%), transport (3.54%), health (2.82%),
communication (2.63%), recreation and culture (1.71%), alcoholic beverages and tobacco
(1.40%), and last on the list is the clothing and footwear (1.04%).
In this case, since Savemore is a supermarket that offers variety of retail products, it
mostly offers products that the consumers spend their expenditure at.
Socio-Cultural, Demographic Trends, and Lifestyle Changes

According to WorldOMeters, the Philippine population is estimated to be 107,656,644 as
of March 22, 2019. And with growing population the needs for necessity is growing too.
Also, United States Department of Agriculture – Global Agricultural Information

Network (USDA GAIN) reported that 59.5% of total of 2016 sales were by “Mom and Pop” also
called sari-sari store. Supermarkets were second with 22.5%; followed by Other Specialty
Retailers (10%); then Hypermarkets (6%); and lastly Convenience Stores (2%).
World Population Review stated that the largest cities in the Philippines such ah Quezon
City, Metro Manila, Caloocan and Davao city also has large population.
With this information, Savemore can build or add more branches in the large cities where
they can help for the convenience of the buyers. They can take advantage of the population and
bring the supermarket near the consumers.

Technological Developments
Continued increases in mobile adaption and mobile penetration have also helped boost
online grocery sales, particularly in the developing regions according to The Nielsen (2015).
These developing countries are namely in Asia-Pacific, Middle East or Africa, Latin America,
North America and Europe. Among these developing countries, Asia-Pacific continuously
exceeds the global average for adoption of all online retailing options. These online retailing
options or e-commerce options are: order online for delivery to home; use online automatic
subscription; use a virtual market; and order online and pick up inside the store.
Due to this increasing demand of online retailing options in Asia-Pacific, Savemore can
increase their sales participating in this trend which is more convenient for the consumers. The
convenience of without going through a queue just to pay for the shopped items is mostly
preferred. Plus, consumers tend to avoid crowded places and supermarkets tend to be crowded.
Ecological Aspects
The Philippines has mostly a hot climate season, especially when it is summer. A very
hot climate can make discomfort to the consumers. They ought to look for much cooler place to
do their shopping. It is something that Savemore should mind of. Good ventilation is a factor to
have a loyal customer. It might loss customers if they experienced discomfort while doing their
shopping.

Industry Analysis
SOURCE: IGD Asia

It is forecasted that the Philippines grocery market to have one of the fastest growth
across the region from 2017 to the year 2022. By 2022, Philippines will be Asia’s fifth largest
grocery market and will have overtaken South Korea in term of value. Globally the market will
become increasingly important rising from the 17th to the 15th largest grocery market in the
world (IGD Asia, 2018).
SOURCE: IGD Asia

In 2022 the market size of the Philippine grocery market is expected to be Php7,673
billion with a market growth of 54.5% from 2017-2022 and a compound annual growth rate
(CAGR) of 9.1% (IGD Asia, 2018).

SOURCE: IGD Asia
It is also forecasted that the top retailers of 2017, which is SM and Puregold, will
continue to drive strong growth and will retain their market leading positions. 7-Eleven
(Philippine Seven Corp) will have the fastest growth of all the retailers; it is expected to overtake
Robinsons and will become the third largest retailer by 2022 (IGD Asia, 2018).
Competitors Analysis
For this strategic marketing management paper, two competitors were considered for the
competitive profile matrix: Puregold and Shopwise
Puregold Price Club, Inc. or simply Puregold is a chain of supermarkets in the Philippines
that offers variety of retailing products in the Philippines with over 300 number of
locations/branches (Puregold Price Club Inc, 2017). The researchers will focus mainly on
Puregold Jr. or Puregold Extra that can be compared with Savemore. Being the said two can be
are in the same category as the Savemore, the neighborhood grocery store.
Shopwise is a another neighborhood grocery store that is known for its affordable quality,
everyday freshness, budget-friendly variety, and fast, friendly and fun service. It is said to be the
most comfortable, practical, and efficient place to shop for a wide selection of fresh goods,
groceries, clothes, toys, and home accessories, all under one roof (SHOPWISE, 2015).

Competitive Profile Matrix

Savemore Puregold Shopwise
Critical Success Factors Weight
Rating Score Rating Score Rating Score
1 Advertising 0.15 3 0.45 4 0.60 2 0.30
2 Product/Service Quality 0.10 4 0.40 3 0.30 2 0.20
3 Management 0.08 4 0.32 3 0.24 2 0.16
4 Financial Position 0.13 4 0.52 3 0.39 2 0.26
5 Partnerships 0.15 4 0.60 3 0.45 2 0.30
6 Market Share 0.12 4 0.48 3 0.36 2 0.24
7 Benefits Offered 0.15 3 0.45 4 0.60 2 0.30
8 E-Commerce 0.12 2 0.24 4 0.48 3 0.36
TOTAL 1.00 3.46 3.42 2.12
Note: (1) Thee ratings values are as follows: 1 = major weakness, 2 = minor weakness, 3 = minor strength, 4 =
major strength. (2) As indicated by the total weighted score of 3.46, Savemore is strongest.
Based from the competitive profile matrix above, advertising and benefits offered are
some factors to be considered for Savemore as rooms for improvement, having 3 as the rating of
each factor while 2 rating for e-commerce where focus is needed.
SM Market has really good advertising strategies. Unfortunately, there are only few that
focus on Savemore. But it can be said that, even though these advertising strategies are not
directly for Savemore, it affects the said neighborhood grocery store indirectly. Being under the
SM trademark makes it indirectly affected by those advertising strategies. It needs improvement
in this area for the reason that it should have more advertisements that focuses on it to make
people around it more aware of the establishment.
As for benefits offered, Savemore has its own benefits offered to its customers but
Puregold is being good in the benefits it’s offering to its customers like Aling Puring that focuses
on those who has a sari-sari store. Thinking for benefits that will be better than the Puregold will
be good for Savemore for it will attract more customers thus will bring more sales.
Lastly, nowadays E-commerce is in demand. Though there is an online website for SM

Market, it is not really that useful. It can only be picked up in a few selected SM Mall branches.

In other words, Savemore is not really active in E-commerce. That is the reason why it is treated
as minor weakness. Minor for a reason that it doesn’t affect a big part for the Savemore but it is
still needed for the growing technology and ease of buying products online.
External Factor Evaluation (EFE) Matrix

Opportunities Weight Rating Score
1 Online Shopping is a Big Trend in the Philippines 0.23 2 .46
2 Health Conscious Consumers 0.20 4 .80
3 Self-care Market is Becoming a Trend 0.13 3 .39
4 Increasing Population in the Philippines 0.10 4 .40
5 Increasing Average Annual Income of Filipino Families 0.17 3 .51
Threats Weight Rating Score
1 Credit Card Frauds .12 3 .36
2 Unemployment Rates are Relatively Rising .05 2 .10
TOTAL 1.00 3.02
Note: A rating is assigned to each key external factor to indicate how effectively Savemore’s current strategies
respond to the factor, where 4 = the response is superior, 3 = the response is above average, 2 = the response is
average, and 1 = the response is poor.
In the external factor evaluation matrix, the total average score is above average, which is
3.02. Savemore took advantage of these opportunities: health conscious consumers and
increasing population in the Philippines, on which given a response that is superior. It is also
given a response that is above average those opportunities: self-care is becoming a trend,
increasing average annual income of Filipino families and credit card frauds. This is in response
to their company’s mission which states:
“We deliver world class, relevant products and services which are
accessible, affordable, aspirational and fashionable.”
Online shopping being a big trend in the Philippines can be an opportunity to Savemore.
Some consumers prefer online shopping where they don’t need to go to the establishment and
some prefer the online shopping and just pick it up in a certain branch. Focusing in this trend
may increase the number of customers and sales of Savemore.

Credit card fraud a can be a problem for Savemore but they are responding well in it by
having some policies about card payments in their establishments. Regarding the problem of
having unemployment rates being relatively rising, the company has a good employment system
hence the effects of it doesn’t concern Savemore.
The Five-Forces Model of Competition

 Rivalry Among Competing Firms - MODERATE
CONDITIONS THAT CAUSE RIVALRY AMONG EFFECT TO
FIRMS SAVEMORE
1 Number of competing firms Low Intensity
2 Similar size of firms competing Low Intensity
3 Similar capability of firms competing High Intensity
4 Falling demand for the industry’s product No Intensity
5 Falling product/service prices in the industry No Intensity
6 Consumers can switch brands Low Intensity
7 Barriers to leaving the market High Intensity
8 Barriers to entering the market Low Intensity
9 Consumer demand is falling Low Intensity
10 Rivals sell similar products/services High Intensity
There are three conditions that provide high intensity to Savemore. Being in the same
industry it is given that competitors of Savemore can have the same capability as what Savemore
can. They also can offer similar products and services of Savemore like points, rewards, and
good service.
Barriers to leaving the market are high because a huge investment was used to come up
with the current assets, competitive advantages, and customers of both Savemore and its
competitors.

 Potential Threat of New Competitors - LOW

As SM Retail is the top grocery market in the Philippines and having numbers of
branches, the industry sets a high barrier to entering the market. Potential competitors need a
huge investment to enter in the industry, quick gaining of economies of scale, experience,
customer loyalty, strong brand preferences and quality customer service.
 Bargaining Power of Consumers - LOW

General public being the target market of Savemore, it is understood that their bargaining
powers are low. It is for the reason that the price of the products and commodities offered by the
company is inexpensive. Savemore offers relevant products and services which are accessible,
affordable, aspirational, and fashionable plus it has point and rewards system that is enjoyable
for the consumers.
 Potential Development of Substitute Products - LOW

Potential development of substitute products bears a very low or no intensity to Savemore
as it was mentioned earlier that entering the market needs large capital requirements. When it
comes to adapting to sudden changes in the new products being introduced to the market, it
doesn’t really affect the company for having a wide range of varieties of products and
commodities.
 Bargaining Powers of Suppliers- LOW

Savemore is good at developing ties with its suppliers, thus it doesn’t have problem
negotiating with its suppliers regarding their product offers. And having a lot of suppliers makes
it is easier for Savemore to bargain to its suppliers.

CHAPTER V - INTERNAL/ COMPANY ANALYSIS
Three-Year Revenue/ Sales Review
Revenue/Sales
300
250
200
150
100
50
0
2015 2016 2017
SOURCE: ANNUAL FINANCIAL STATEMENT, SM INVESTMENT CORPORATION
SM Retail, which is comprised of market leading brands like THE SM STORE, specialty
retailing and food retailing led by SM Markets, reported growth in total revenues of 7.3% to
PHP297.4 billion, while net income stood at PHP10.4 billion in 2017. The Non-Food and Food
Group comprised 49% and 51%, respectively, of merchandise sales in 2017 and 2016,
respectively.
YEAR REVENUE NET INCOME

2015 127.3 BILLION 4.1 BILLION
Through its multiformat approach, SM Retail serve the needs of different communities
nationwide. In 2017, 80% of SM Retail’s store expansion was outside of Metro Manila. At end-
December 2017, SM Retail had a total of 2,032 outlets, comprising 59 THE SM STORES, 1,299
specialty retail outlets, 52 SM Supermarkets, 47 SM Hypermarkets, and 181 Savemore, 46

WalterMart and 348 Alfamart stores. A total of 341 outlets were added in 2017 across the retail
business portfolio.
The food group, which includes SM Markets (SM Supermarket, SM Hypermarket and
Savemore), WalterMart and Alfamart maintained its focus on enhancing product assortment
based on market trends as well as expanding to new territories across the country. This enabled
the food group led by SM Markets to keep its targets and maintain its lead despite the
increasingly competitive food retail environment. The food group added 180 new stores (with
Alfamart and WalterMart) in 2017, spanning full coverage of the Philippines from its Aparri
store up North to its General Santos down South. Aside from Aparri, the group’s expansion
included Boracay, Cotabato, Puerto Princesa and mostly stand-alone Savemore stores in
provincial areas. SM Markets alone expands its stores at a rate of 30 stores per year, bringing its
world-class food shopping to citites and municipalities across the Philippines. During the past
year, SM Markets continued to finetune its operations and facilities to ensure a consistent SM
Markets shopping experience of comfort, completeness, and convenience in all its stores. Its SM
Eats counter which serves best-selling ready-to eat favorites and category expansion of fresh
food, home essentials, and apparel were major factors in the group’s growth.
Country’s Biggest Food Retail Chain

SM Retail, Inc., which is comprised of non-food (THE SM STORE and specialty stores)
and food stores (SM Markets), delivered total revenue growth of 7.3% to PHP297.4 billion. Net
income stood at PHP10.4 billion boosted by strong consumption from consumers with more
disposable income and increased market penetration from the aggressive expansion of their
specialty and mid-size stores and minimart format.
Sanford Marketing Corp., SM Retail’s subsidiary that handles the 174 Savemore stores
across the country, posted revenue amounting to Php41.1 billion in 2016. The three SM Retail
units’ revenues in 2016 add up to Php124.2 billion, which is 42% more than Puregold’s sales. It
maintained its strong position by opening new stores which were more accessible to consumers,
particularly through its Save More Supermarket and Alfamart.

One-Stop Shop
Savemore is a mid-format supermarket that stands alone as a neighborhood store built to
service impulse markets and smaller communities across the country. Savemore is SM's fast
expanding vehicle for introducing organized retail in areas where there is either a limited offer of
products or none at all. Most SM stores also offer additional services like ATM banking, bills
payment, remittances, money exchange, pharmacy, and even laundry services in select outlets,
ensuring the one-stop shopping convenience that the SM brand is known for.
SM Bonus
SM Supermarket carry their store brand name, SM Bonus, on their shelves. The range of
products under this store brand has gotten to be very extensive and includes personal care
products, canned goods, packaged snacks, laundry aids, pet-care products, fresh meat, and
poultry. Key purchase motivator of a consumer is low price and SM Bonus brand retails at 15 to
30 percent cheaper than leading national brands.
Convenient Location
Demographics play a vital role in the selection of sites to open. They’re bringing in the
convenience and reliability of an SM supermarket closer to their customers. They can offer them
a wide range of quality products, competitively priced, in a clean, air-conditioned environment,
with their trademark customer service.
Weakness
Items’ Prices
Savemore’s location are mostly on the neighbourhood and smaller communities.

Consumers living on that area are composed mainly of low to middle income earners. Of Course,
they would want lower prices. Some items’ prices of Savemore are little bit higher compared to
its closest competitors.


Customers’ Complaints
Consumers have the right to complain if it can be shown they have been deceived. When
a customer complains, it is usually for a good reason or genuine concern. They usually have
made a purchase that did not meet their expectation.
INTERNAL FACTOR EVALUATION (IFE) MATRIX

STRENGTHS WEIGHT RATING SCORE
1 Part of the Country’s Biggest Food Retail Chain 0.12 4 0.48
2 Convenient Location 0.13 4 0.52
3 Promotions and SM Advantage Card Discounts 0.09 3 0.27
4 Excellent Customer Service 0.10 4 0.40
5 One-stop Shop 0.13 4 0.52
6 SM Bonus 0.08 3 0.24
7 Use of Green bag 0.09 3 0.27
WEAKNESS WEIGHT RATING SCORE
1 Some customers’ complaints 0.07 2 0.14
2 Some items’ prices are a little bit higher compared to 0.11 2 0.22
other supermarkets
3 Lack of advertisement 0.08 1 0.08
TOTAL 1.00 3.14
Note: A rating is assigned to each key internal factor to indicate whether the factor represents a major weakness
(rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or a major strength (rating = 4).
Conclusion
A minor weakness of Savemore is customers’ complaints. We cannot avoid complaints.

Savemore must take care of the customer by listening to the complaint and resolve it to ensure a
happy customer. Another weakness is Savemore prices are little bit higher compared to other
supermarkets. If they don’t have the plan to set the price below its competitors, then they should
bring new features and improvements on their products and services that would justify their
price.

VI - STRATEGIC FORMULATION
STRENGTH-WEAKNESSES-OPPORTUNITIES-THREATS (SWOT) MATRIX

STRENGTH WEAKNESS
1 Part of the Country’s 1 Some customers’
Biggest Food Retail Chain complaints
2 Convenient Location
3 Promotions and SM 2 Some items’ prices are a
Advantage Card Discounts little bit higher compared
to other supermarkets
4 Excellent Customer Service
5 One-stop Shop 3 Lack of Advertisement
6 SM Bonus
7 Use of Green bag
OPPORTUNITIES SO STRATEGIES WO STRATEGIES
1 Online Shopping is a Big Establish a new store Continuous improvement
Trend in the Philippines format to their distributors for quality service (W1,
(S1, O1, O4, O5) S1, S2, S3)
2 Health Conscious Integrate free check-ups Research for the standard
Consumers promotion (S2, S4, S5, O2, price applicable to what
03) is trend. (W2, O4, O5)
3 Self-care Market is Develop new promotions Create web pages and

Becoming a Trend involving the membership social media to attract
card (S3, S6, S7, O4, O5) possible customers (W1,
4 Increasing Population in W2, O1)
the Philippines
5 Increasing Average
Annual Income of
Filipino Families
THREATS ST STRATEGIES WT STRATEGIES
1 Credit Card Frauds Improvement of Security
Measures (S1, S2, S4, S5, Have better training for
T1) the employees for better
2 Unemployment Rates are Continuous improvement service and security of
Relatively Rising for quality service (S3, S4, customers (W1, T1, T2)
S6, S7, T2)

STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) MATRIX

INTERNAL ANALYSIS RATE EXTERNAL ANALYSIS RATE
Financial Position (+1 Worst, +6 Best) Stability Position (-6 Worst, -1 Best)
Savemore’s Revenue +6.00 Competitive Pressure -2.00
Inflation -2.00
Barriers to Entry into Market -1.00
TOTAL +6.00 -5.00
AVERAGE +6.00 -1.67
GRAND TOTAL (y-coordinate) +4.33
INTERNAL ANALYSIS RATE EXTERNAL ANALYSIS RATE
Competitive Position (-6 Worst, -1 Best) Industry Position (+1 Worst, +6 Best)
Market Share -1.00 Profit Potential +5.00
Brand and Image -2.00 Ease of Entry into Market +4.00
Affiliate Relations -1.00
Product/Service Quality -2.00
TOTAL -6.00 +9.00
AVERAGE -1.50 +4.50
GRAND TOTAL (x-coordinate) +3.00
Note: A rating is assigned from +1 (worst) to +6 (best) to each of the variables that make up the financial position
(FP) and Industry position (IP), while from -1 is (best) to -6 (worst) to each of the variables that make the
competitive position (CP )and stability position (SP). For FP and CP, comparisons were made to competitors for IP
and SP, comparisons were made to the industry.
The above table shows that Savemore’s rate in financial position is +6.00. This is because
of the positive revenue of the company has. Also, its stability position is at -1.67, which is a good
remark. There are barriers for the potential competitors to entry the market since the Savemore
has an image that is a number one neighborhood grocery. For its competitive position, a -1.50
remarks a good standing as compared to its competitors. Lastly, a +4.50 rate is given to
Savemore, an above average rate, since most factors presented are controllable in nature.

Aggresive
Plotting these points on a graph, the y-coordinate is the sum of financial position and
stability position which is +4.33, and the x-coordinate is the sum of industry position and
competitive position which is +3.00, this means that the financial strength of Savemore is above
compare to other companies in the industry. In this case, Savemore may plan much strategies to
have a greater share in the market since its finances are enough for its strategies. This also means
that Savemore is in a great position to take advantage of the external opportunities, overcome
internal weaknesses, and avoid or minimize external threats.
Because it falls in the first quadrant (+,+), Savemore may have aggressive strategies such
as backward, forward, horizontal integration, market penetration, market development, product
development, and diversification (either related or unrelated).

INTERNAL-EXTERNAL (IE) MATRIX
THE IFE TOTAL WEIGHTED SCORES

Strong Average Weak
3.00 to 4.00 2.00 to 2.99 1.00 to 1.99
THE EFE TOTAL WEIGHTED SCORES
High
3.00 to 4.00 I II III
Medium
2.00 to 2.99 IV V VI
Low
1.00 to 1.99 VII VIII IX
The total weighted score of Savemore in the EFE Matrix earlier is 3.02 which means the
Savemore highly response to its key external factors. On the other hand, 3.14 is the total
weighted score of Savemore in the IFE Matrix earlier, in other words Savemore has a strong
internal position. Due to this, Savemore falls on the first quadrant of the IE Matrix as shown
above.
The first quadrant is referred to as the “grow and build” quadrant. This implies that
Savemore may consider any of the following strategies: backward, forward, or horizontal
integration, market penetration, market development, and/or product development.

QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)

STRATEGIC ALTERNATIVES
STRATEGY 1 STRATEGY 2
Establish a new Integrate free check-
store format to their ups promotion
distributors
KEY FACTORS Weight AS TAS AS TAS
OPPORTUNITIES
Online Shopping is a Big Trend in the 0.23 4 0.92 - -
Philippines
Health Conscious Consumers 0.20 1 0.20 4 0.80
Self-care Market is Becoming a Trend 0.13 - - 4 0.52
Increasing Population in the Philippines 0.10 3 0.30 2 0.20
Increasing Average Annual Income of 0.17 4 0.68 2 0.34
Filipino Families
THREATS
Credit Card Frauds 0.12 4 0.48 - -
Unemployment Rates are Relatively 0.05 2 0.10 1 0.05
Rising
TOTAL 1.00
STRENGTH
Part of the Country’s Biggest Food Retail 0.12 4 0.48 3 0.36
Chain
Convenient Location 0.13 - - 4 0.52
Promotions and SM Advantage Card 0.09 4 0.36 - -
Discounts
Excellent Customer Service 0.10 3 0.30 4 0.40
One-stop Shop 0.13 4 0.52 3 0.39
SM Bonus 0.08 4 0.32 - -
Use of Green bag 0.09 2 0.18 - -
WEAKNESS
Some customers’ complaints 0.07 4 0.28 3 0.21
Some items’ prices are a little bit higher 0.11 4 0.44 - -
compared to other supermarkets
Lack of Advertisement 0.08 3 0.24 2 0.16
TOTAL 1.00 5.80 3.95
Note: Attractiveness scores (AS) are determined by examining each key external or internal factor, one at a time and
evaluating if the factor can be affected by the strategy being made. If it will be affected, it is being compared to
other strategies and rated either 1 = not attractive, 2 = somewhat attractive, 3 = reasonably attractive, or 4 = highly
attractive. If the factor has no effect upon the specific strategy, a dash is placed instead of a rate. Assigned AS to one
strategy, the rate is not being repeated.

In the QSPM, attractiveness scores (AS) are determined by examining each key external
or internal factor, one at a time, and evaluating if the factor can be affected by the strategy being
made. If it will be affected, it is being compared to other strategies and rated either 1 = not
attractive, 2 = somewhat attractive, 3 = reasonably attractive, or 4 = highly attractive. If the
factor has no effect upon the specific strategy, a dash is placed instead of a rate. Assigned AS to
one strategy, the rate is not being repeated.
From the QSPM earlier, the first strategy, establishing a new store format to their
distributors, got the highest attractive score, 5.80, as compared to other strategic alternative.
By assessment, this strategy is in consistent with the mission of PayMaya:
“We deliver world class, relevant products and services which are accessible,
affordable, aspirational and fashionable.”
To deliver more accessible, Savemore needs to be more accessible by its consumers. It
should not be just accessed by walk-in costumers only, potential online customers should have
also accessed to buy in the store which is convenient for them.
Lastly, in response to their vision:
“To be the lifestyle brand of choice leading in every community we serve.”
This strategy will help to serve the online community which finds the convenient of
online shopping helpful. By this, the online community can have their grocery just by staying at
their home.
Other than the previous assessments, this strategy will help Savemore increase its market
share by having the online community as its target market. Notwithstanding the fact Savemore
has established a brand and image that consumer’s trust and have a quality service, will be
assumed to increase its growth in the following years.

VII - OBJECTIVES, STRATEGY RECOMMENDATION AND ACTION PLANS
Strategic Objectives
 To have the online shopping be known nationwide and increase Savemore’s market share
by 15% per year in 2020 to 2022
Financial Objectives
 To increase Savemore’s sales by 10% in 2020, 12% in 2021 and 15% in 2022.
Recommended Business Strategies

The proposed strategy, as it was the result of matrixes, is:
“Establish a new store format to their distributors”
The following are the business strategies to achieve the objectives :
 Cascade the strategy to ensure that everyone is aware of the goal which is establishing a
new store format for their customers.
 Perform a consumer behavior research to know the needs and wants of the consumers.
Take note of the consumer’s preference on grocery shopping.
 Develop a market research on how many people prefer to shop through online shopping.
With the continued increases in mobile adaption and mobile penetration, people found
their way on how they can make their tasks easily.
 Evaluate the products’ prices. Choosing the best supplier with the best offer. Set a
reasonable price for the products.
 Creating advertisement through web page and social media. Creation of online accounts
on social media platforms such as Facebook, Twitter, Instagram, etc.
 Aside from social media, creating an advertisement through discounts and bundles to
attract consumers. Consumers look for deals, convenience and advice on items that
complement each other that bundles have.

 Develop new products under the store brand name, SM Bonus. Innovate SM Bonus to
provide
 Continue to perform researches so that Savemore can respond to possible changes.

CHAPTER VIII – STRATEGY IMPLEMENTATION
Action Plans and Programs

TIMELINE MILESTONES/ RESPONSIBLE
EXPECTED OUTPUT DEPARTMENT
MEETINGS PER May 2019 – Strategic objectives, plans,  Top Management
FUNCTIONAL AREAS June 2019 actions, and long-term  Managers from all
goals are understood by the Functional Areas
employees from top to  Supervisory
supervisory management. Employees
MARKETING July 2019 - Information regarding the  Marketing
RESEARCH ON August 2019 needs and wants of Department
CONSUMER’S consumers on supermarkets  Research and
BEHAVIOR, NEEDS and to lessen overstock. Development
AND WANTS Department
MARKETING September 32% of consumers prefer  Marketing
RESEARCH ON 2019 the convenience of online Department
CONSUMERS WHO shopping.  Research and
PREFER ONLINE Development
SHOPPING Department
EVALUATION OF October 2019 Some products are below  Marketing
PRICES OF – November or almost the same price as Department
PRODUCTS 2019 the competitor.  Accounting
Department
CREATING A November To start online shopping for  Program
WEBPAGE OR 2019- the consumers and in order Development
SOCIAL MEDIA December for them to have Department
ACCOUNTS 2019 convenience
CREATING AN December Attract consumer’s eye  Marketing
ADVERTISEMENT 2019 inside the stores and on the Department
THROUGH official Websites  Research and
DISCOUNTS AND Development
BUNDLES Department
PARTNERSHIPS AND December Additional SM Bonus  Research and
PRODUCT 2019 products. Development
DEVELOPMENT Department
 Production
Department
IMPLEMENTING THE January 2020 More sales whenever  Marketing
ADVERTISED there’s a holiday that needs Department
DISCOUNTS AND bundles of consumer goods  Finance
BUNDLES and discount for the over Department
stocks and will catch more
opportunities sales online

EVALUATION OF June 2020 Market share will increase  Marketing

SAVEMORE MARKET by 20% Department
SHARE  Research and
Development
Department

CHAPTER IX - STRATEGY EVALUATION, MONITORING AND CONTROLLING
Strategic Objectives Measures Targets Programs

Properties
Financial Minimizing high Effective Financial To empty all Creating an
Inventory Costs Advertisements Statements of the excess advertisement
of the of the through
Discounts and Inventory discounts and
Bundles bundles
Customer Keep All the Increase Every OR Increase at Implementing
Active Shoppers monthly active (Original least 17% per the
every month Shoppers Receipt) year of Advertised
inside all the collected in Shoppers that discounts and
stores everyday are active in Bundles
activity every month
Internal Dominance on Increase the Every OR Greater Evaluation of
The Market number of (Original Market Market
Shoppers in Receipt) shares over Shares
Savemore collected in the opposing
everyday Providers
activity
Learning Mastery of what Effective Research To Be the Marketing
and to Inventory marketing and outputs Best Research on
Growth based on the advertising supermarket Consumer’s
trend of what the and a behavior,
Consumers’ consumer needs and
wants and needs friendly Wants
supermarket

REFERENCES
https://www.philstar.com/business/business-as-usual/2008/04/28/58727/savemore-
neighborhood-sm#dqApSpF4LtMFQFE0.99
https://business.inquirer.net/90718/how-should-we-respond-to-the-growth-of-private-label-
brands#ixzz5iuhJd6Ab
https://www.sminvestments.com/company-releases/savemore-seizing-unique-opportunities-
accelerated-growth
https://www.sminvestments.com/company-releases/savemore-market-expands-southern-
philippines-opens-7-stores%C2%A0-february
https://business.inquirer.net/226821/sms-savemore-steps-
expansion?utm_expid=.XqNwTug2W6nwDVUSgFJXed.1
https://www.philstar.com/business/business-as-usual/2008/04/28/58727/savemore-
neighborhood-sm
https://psa.gov.ph/content/average-family-income-2015-estimated-22-thousand-pesos-monthly-results-
2015-family-income
https://psa.gov.ph/nap-press-release/sector/Household%20Final%20Consumption
http://www.worldometers.info/world-population/philippines-population/
http://worldpopulationreview.com/countries/philippines-population/
https://www.nielsen.com/content/dam/nielsenglobal/vn/docs/Reports/2015/Nielsen%20Global%20E-
Commerce%20and%20The%20New%20Retail%20Report%20APRIL%202015%20(Digital).pdf
http://www.puregold.com.ph/index.php/our-business/
https://www.shopwise.com.ph/about-us


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[Type text]

A Strategic Management Paper Presented to

In Partial Fulfillment of the

CASTRO, JARROD DAVID

CHAPTER I – EXECUTIVE SUMMARY .................................................................................................. 4

Castro, Duarte, Gadin, Noche Page 2

CHAPTER IX - STRATEGY EVALUATION, MONITORING AND CONTROLLING ....................... 31

Castro, Duarte, Gadin, Noche Page 3

CHAPTER I – EXECUTIVE SUMMARY

Savemore has built a credible reputation as a retail market in every community

category or a neighborhood retail store in the Philippines.

complaints. In addition, Savemore’s opportunities include increasing population in the

help in developing the company.

Castro, Duarte, Gadin, Noche Page 4

CHAPTER II – COMPANY BACKGROUND

Sanford Marketing Corporation, commonly known as Savemore Market, is an affiliate of

Castro, Duarte, Gadin, Noche Page 5

CHAPTER III – COMPANY’S VISION AND MISSION

“To be the lifestyle brand of choice leading in every community we serve.”

On the other hand, the mission statement of Savemore Market is as follows:

Recommended mission statement for SaveMore is presented below:

Castro, Duarte, Gadin, Noche Page 6

Castro, Duarte, Gadin, Noche Page 7

CHAPTER IV – EXTERNAL ANALYSIS

Socio-Cultural, Demographic Trends, and Lifestyle Changes

Also, United States Department of Agriculture – Global Agricultural Information

Castro, Duarte, Gadin, Noche Page 8

Castro, Duarte, Gadin, Noche Page 9

SOURCE: IGD Asia

SOURCE: IGD Asia

Castro, Duarte, Gadin, Noche Page 10

SOURCE: IGD Asia

Castro, Duarte, Gadin, Noche Page 11

Competitive Profile Matrix

Lastly, nowadays E-commerce is in demand. Though there is an online website for SM

Castro, Duarte, Gadin, Noche Page 12

External Factor Evaluation (EFE) Matrix

Castro, Duarte, Gadin, Noche Page 13

The Five-Forces Model of Competition

Castro, Duarte, Gadin, Noche Page 14

 Potential Threat of New Competitors - LOW

 Bargaining Power of Consumers - LOW

 Potential Development of Substitute Products - LOW

 Bargaining Powers of Suppliers- LOW

Castro, Duarte, Gadin, Noche Page 15

CHAPTER V - INTERNAL/ COMPANY ANALYSIS

Three-Year Revenue/ Sales Review

YEAR REVENUE NET INCOME

Castro, Duarte, Gadin, Noche Page 16

Country’s Biggest Food Retail Chain

Castro, Duarte, Gadin, Noche Page 17

Savemore’s location are mostly on the neighbourhood and smaller communities.

Castro, Duarte, Gadin, Noche Page 18

Castro, Duarte, Gadin, Noche Page 19

INTERNAL FACTOR EVALUATION (IFE) MATRIX

A minor weakness of Savemore is customers’ complaints. We cannot avoid complaints.

Castro, Duarte, Gadin, Noche Page 20

STRENGTH-WEAKNESSES-OPPORTUNITIES-THREATS (SWOT) MATRIX

3 Self-care Market is Develop new promotions Create web pages and

Castro, Duarte, Gadin, Noche Page 21

STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) MATRIX

Castro, Duarte, Gadin, Noche Page 22