FREEWICH PIZZA

Case Report
 TIME CONTEXT

The problem was observed by Mr. Smith for three (3) years;
from 1993 to 1995. However, the problem arises on the third
year of operations. Mr. Smith found out that though the sales
increased, the target of 30% to 35% sales increase was not
set.
30% 35%
1995

1994
1993
2
Point of View

Mr. Raul Aquino

Marketing Manager of Freewich

3
 Company Objective

ONE THREE

o To build upon its own brand o To rationalize Marketing

image to improve customer Strategy
relation.

TWO FOUR

o To achieve targeted growth o To differentiate Freewich Pizza

sales 30% to 35% for the year from its competitor in terms of
1995 Marketing Strategy and way of
reaching out to the customer.

4
MISSION

The Freewich Pizza is an Eco-Friendly fast food

outlet that aims to provide high quality standard
and services and to meet the preferences of its
customers; the Filipino.

5
 Solutions
Measure sale activity. “which
gets measure, improves.” By
simply monitoring day-to-day
activity of sales, ways of
improving can be learned Be controversial. Provide
convenience through prompt
delivery-do something
drastically different.
Create and maintain
favorable attention by
providing innovative and
unique accessory of the
product which is the
biodegradable eco-friendly
box.
Identify the root cause of
the underperformance.
Main Problem

The expected
increase of 30% to
35% sales as well
as with the profit
was not achieved.
Secondary Problems

How to advance the current marketing How to expand the limited distribution of
strategy of Freewich Pizza? the product?

Why did the Cost of Good Sold increase by 10% despite of having their
own form where they get the main ingredients of their products in
which they would have incurred less cost?

The management did not consider other relative factors that could affect their
business operations such as undergoing into fast pacing of long term decisions.
Areas of Consideration
SWOT

• The price of Freewich Pizza is reasonable which

makes it a customer friendly product.
• Greenfood has competent employees- a strong
workforce.
• Greenfood is flexible which makes it able to
cope immediately with competitors.
• Greenfood uses in its product environmental
friendly boxes which consists of biodegradable
corrugated boxes.
• Greenfood introduced the use of homegrown
products from their farms using their freshly
harvested crops.
• Greenfood takes into consideration Corporate
Social Responsibility, particularly the well-being of
the environment.
Areas of Consideration

• Greenfood has inconvenient geographic

positioning, because it has limited
distribution of products to strategic places.
• Greenfood needs more improvement in its
marketing, especially advertising strategic
places.
• Greenfood failed to minimize costs along
with increasing its sales.
Greenfood can
conduct
Marketing
Penetration
through
franchising
PPORTUNITY
Areas of Consideration

• Marketing Strategies
of Competitor.
 Alternative Course of Actions

Identify & Close Weak

Branches

• It will help lessen cost directly attributed to branches.

Pros: • They can focus to income generating branches,
• The Cost incurred by weak branches may be used to improve other
branches to have a better operation.

Closing branches would surely decrease profit in totality.

Cons:
 Alternative Course of Actions
They must conduct a
survey and analyze
customer traffic and
performance per store

• It will help the company to determine factors that will have an impact
Pros: on their operations. If the survey shows negative or unpleasant results,
then additional actions can be done.

• Additional costs will be incurred in conducting surveys.

Cons:
 Alternative Course of Actions
When it comes to promotion, they must keep on having delivery services, their hot
meals, soup packages and combo meals. They must eliminate beer to have a
more family-oriented environment. They must also offer promos like free card and
coupons, buy one, take one, budget and combo meals. They must also have
occasion-based promos e.g. birthdays, valentine’s day, Christmas, etc. They can
also have flavor of the month.
• More family-oriented environment, effective in attracting children and
Pros: parents.
• Serve as bait in attracting customers because it gives excitement to
the consumers.

• Lost contribution margin generated by serving the beer.

Cons: • It will incur additional costs.
• Additional time for planning and implementation of said strategies
affect company’s efficiency-additional workloads will be incurred.
 Alternative Course of Actions

Make a survey about the demands of the consumers and at the same time,
improve pizza variety and introduce new line of products and consider larger
servings e.g. barkada package

• Innovation of new products will attract new customers and will

Pros: generate additional Contribution Margin to the Company. Thus, can
also increase market share by introducing new products.

• Introduction of new products will require additional workloads for it to

Cons: be effective. It includes proper planning and research which includes
conducting survey. Thus, it will incur additional costs.
 Alternative Course of Actions

Minimization of costs attributable to the production of goods and services and

selling, general and expenses.

• Will lead to increase of Contribution Margin that will also increase net
Pros: income.

• Quality of products will be affected, for example, usage of

Cons: environment-friendly boxes and fresh products.
 Alternative Course of Actions

Greenfood may
open Freewich for
franchise.

Pros: • The company would generate additional revenue from franchise.

• Freewich would be introduce to a wide market.

Cons: • The company will incur additional costs.

 Decision Criteria
Legend:
1 – Least Feasible
2 – Feasible 1 2 3 4
3 – Likely Feasible
4 – Most Feasible
A.) Identify & Close Weak
Branches
B.) Conduct a survey, analyze
customer traffic and
performance per store
C.) Promotion
D.) Survey about demands of
the customer
E.) Minimization of costs
F.) Franchising
Recommendation

It is recommended for Freewich Pizza to do the 3rd & 5th course of action as
they are the most feasible as evidenced by our decision criteria.
Additionally, work on the assumption that the Freewich Pizza should not be
closing any stores in the upcoming years and focus more on innovation, customer-
focused promotion, target marketing and brand differentiation.
With this, to maximize benefits & rationalize expenses, Freewich should differentiate
their brand in a way where Freewich Pizza should focus on a family-friendly dining
experience ( as their target market), giving out promotional vouchers such as
freebies, budget & combo coupons, etc., and introduce new menu items that
support customer demands.
Therefore, as we recommend Mr. Raul Aquino to not only exhibit the said
courses of action, but to monitor such actions by testing operational performance,
review expenses and evaluate the efficiency and effectiveness of the strategies
recommended.
Thank You