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Anne Ma Nicole Lopez

on 27 February 2015

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Transcript of Timeline

In 1965, Que family established Tropical Hut Hamburger, one of the first local fast food chains introduce burgers in the Philippines.
Purpose of the Study
Mission Statement
"The Pursuit of excellence in providing the general public with superior quality products at competitive/reasonable prices as well as prompt, convenient, courteous, friendly and effective service. This is our commitment to God Almighty, our Fellowmen, Family and Country."
They consider the quality of their products to be of absolute importance, it sets standards for suppliers that are amongst the highest in the food industry.
• To examine the corporation’s vision, mission and its objectives and analyze the strategies used to achieve them.
• Analyze their strengths and outside opportunities and how they used them to their advantage.
• Analyze their weaknesses and threats and what they did to encounter them.
• Identify the reasons behind their downturn.
• Recommend strategies to improve their operations, attract more customers and maintain sustainable advantage in the food industry.

• Stores are not accessible; located outside the malls
• Lack of promotional strategy.
• The place is not modern.
• Cannot produce more sales than its main competitors (McDonald’s, Jollibee)
• Being dominated by its competitors
• Only few branches nationwide
• Availability of franchises
• Internet potential for online orders to customers
• New product development (breakfast food menus)
• Can build its brand by doing Ad campaigns/advertisement

• Existing numbers of competitors
• Future/potential competition from a national and international company
• The growing trend of a healthier lifestyle
• Customer loyalty to competitors
• Large number of outlet of competitors
• Unfamiliarity of Filipinos living in rural/provinces areas to Tropical Hut

• Opened their first branch in Philippines during 1997
• Offers Burgers, Fries and Milkshakes
• Renowned in producing variety
of flame-grilled burgers in the market

With the modern technologies and changing trend of the food industry, Tropical Hut can still go on with the latest trend through social networking site. But in spite of their strengths and opportunities Tropical Hut did not used it well to surpass other competitors.

• First came here in the Philippines at 1981
• Offers Burgers, Fries, Sodas, Sundaes, Floats, Chicken Meals, etc.
• Considered as top producer of burger in the Philippines

• Entered the market at 1975
• Offers Burgers, Fries, Soda, Ice Cream and Chicken Meals, etc
• The largest fast food restaurant in the Philippines

• Opened their first branch in Philippines during 1969
• World's third largest hamburger fast food chain
• Offers hamburgers, chicken sandwiches, French fries and beverages

• To have a clean vision statement to supplement their mission in attaining their objectives.

• We would also like to reintroduce Tropical Hut Hamburger products to the public especially to the young ones because it is a local brand that we should patronize.

Tropical Hut is reputedly the first hamburger choice in the Philippines. They have 50 branches nationwide.

During 1980's to 1990's, competitors came in the Philippines and results to Tropical Hut began to decline to some of its branches.
Being the first to introduce BURGERS in the Philippines
Affordable prices of products
Excellent staff who are highly trained
Locally recognized brand
Serves variety of dishes aside from burgers.
Competitive Analysis
(Strategies used by Tropical Hut)

Product Development

They are offering a different variety of menu on their stores.

Tropical Hut is lacking of marketing strategy;
they do not advertise
do not have flyers, billboards, commercials in which people can recognize them.

This is one of the major reason why Tropical Hut experiencing downturn today.
Tropical Hut is implementing Drive-thru (Drive and Go) and 24hr Delivery service.

Proposed Vision Statement

“To be the Filipino’s leading choice of fast food service and delicious foods.”
Tropical Hut is experiencing a downturn today in Philippines’ fast food market. They are closing down their branches in which shows that they are financially distressed. The primary reason why Tropical Hut is experiencing these is because they lack marketing strategy and innovation.

The recommended strategies which are rebranding strategy, proposal of vision statement, market penetration through market development, promotional strategy, TV ads, direct marketing and website development that we gave will help Tropical Hut stood up again in the market.
Market Development
•By changing their location within malls and renovation of particular facilities and equipment,customers will tend to appreciate the ambiance as well as its cleanliness.
Promotional Strategies
Market Penetration Strategy
• Market Penetration is the activity or fact of increasing the market share of an existing product, or promoting a new product, through strategies such as bundling, advertising, lower prices, or volume discounts.
Free Wi-Fi Zone will also help Tropical Hut attract their customers to Dine in with because it is the new strategy of most of the restaurants nowadays.
With the help of TV advertisement, the new product lines will be introduced and will give a strong impact of retention in the mind if their target market.
• TV Advertising
By providing a tropical hut booth in some areas, will help to distribute their new products.
• Direct Marketing
(New Product Distribution)
Launching a more innovative and eye-catch website and Mobile App for tropical Hut Philippines.
• Proposed Website Development
Tropical Hut is lacking on Marketing Strategy and some product improvement. They do not advertise, and set some marketing plans to promote their product.
During 2010, the Company’s current ratio is 0.83:1 which indicates that the Company’s current assets were not enough to pay its short-term obligations. During 2011, the Company’s current ratio decreases to 0.85:1 which indicates that its ability to pay its short-term obligations became worse
During 2010, the Company’s quick (or acid-test) ratio is 0.39:1 which shows that its current assets is less than its inventory is not enough to meet its short-term obligations. During 2011, the Company’s quick ratio decreases to 0.37:1 which shows that its ability to meet its short-term obligations became worse Therefore, Tropical Hut Food Market, Inc as of December 31, 2011 and 2010 is not liquid.
• To boost sales through marketing and advertisement, we would like to propose a rebranding campaign for Tropical Hut.
Full transcript