Script

Jvy: Good afternoon ladies and gentlemen, we are Group 3, and today we are presenting to
you the Industry Analysis of our business “Cocoroons - Flavored Coconut Macaroons”. To
begin, I will present to you the industry overview of our business.
Cocoroons is considered bake and pastry product. Bake and pastry grew over the last
century across the Philippines, from a comparatively modest industry to large, well-known
industry. Primarily, the island featured the first freelance bakeries that worked in cities and towns
and provided employment to the local people. At the present time, chain confectioneries have
raised the number of bakeries in the Philippines and have also lowered the costs of bakery
products. Because of the increased demand for bakery products from the population in the
Philippines, the baking industry has grown, as a result, it is providing larger employment
opportunities both in the bakeries and in central management.
As stated by the 2015 annual survey by the Philippine Statistics Authority, “baking of
bread, cakes, pastries, pies, and similar ‘perishable’ bakery products led the industries with
6,704 enterprises or 27.4 percent of the total.” Non-packaged baked goods are retailed through
two forms of bakeries in the Philippines: high-end establishments typically located in shopping
centers, and community bakeries located in the vicinity of consumers’ homes. Sales of baked
goods as a whole slowed in 2020 as some players like Goldilocks and Red Ribbon, which sell
through their own bakeries located in shopping centers, were adversely impacted by the
lockdowns which prohibited these shopping centers from operating.
To continue with the history and trivia, may I call on Ms. Maria Katrina De Guzman.

Katrina:
History
Macaroon is - as mentioned before - adapted from macaron. The word macaron comes from the
Italian word, 'maccherone', and Venetian 'macarone' which translates to “fine paste”.
This 'fine paste' refers to the crushed almonds in the recipe which first defined the macaron. The
word 'macarone' descends from the Italian word 'ammaccare', which means “to crush”.
According to legend, the birth of the macaroon is linked back to 7th and 8th-century Italian
monasteries. Arab invaders are thought to have bought almonds in the 7th century. While
another myth states that macaroons were first found in a small convent in Commercy, France, in
the year 791. Sourced from the east and made by monks, these crushed almond delights soon
caught on and developed further in the Italian/French affair, to be mastered and sold by the
bakeries and patisseries of Venice and Paris.
The shift in the ‘macaron’ becoming the ‘macaroon’, with the addition of shredded coconut, is
due to macaroon manufacturers using coconut to help maintain the nut paste due to its
preservation qualities, as well as being easier to ship without being spoiled. This is dated back
to a French company in 1890, wishing to distribute the nut from Ceylon and Sri Lanka into
Europe.
Trivia
Macaroon or Macaron?
Macaroon reveals a deliciously dense, sweet, soft, and chewy texture of coconut. Traditional
ingredients for making macaroons are coconut shavings, eggs, sugar, salt, and additional
flavorings or extracts, such as chocolate, almond, or vanilla while the macaron is a sweet
sandwiched confection of crispy almond meringue, with a creamy, sweet filling in the center,
such as chocolate or jam.
To continue with the supply, may I call in Ms. Trisha De Guzman.

Trisha: There are already many established and well-known businesses relating to the bake
and pastry industry in the Philippines yet Cocoons will surely be a unique one because of its
various flavors that are not present to others. The company will be venturing into the bake and
pastry industry wherein there is great competition. The proponents observed that there are a lot
of existing bakeshops in the Philippines but enhanced products such as flavored coconut
macaroon are rare in this industry. The researchers also noticed that manufacturers only sell a
common flavor of macaroons which is the buttered coconut, so the researchers have come up
to sell an alternative for the common type of macaroon. The gap that the proponents have found
in this industry is the availability of uncommon macaroons that are convenient to the consumers
in terms of different flavors.
To discuss the demand, may I call in Ms. Angeline Dela Cruz.

Angeline: Based on the conducted survey of the researchers, out of 100 respondents, 90%
think that Cocoroons is a very unique business to invest in and 97% are willing to buy the
product. It is also found that 90% of the respondent would absolutely recommend the product
and 79% of them are willing to spend 10-15 pesos which is the estimated price range for three
pieces of macaroons. Mango-flavored macaroons are the most suggested flavor but they are
also willing to try strawberry, cheese, and salted caramel flavors. Having said that Filipinos tend
to look for snacks that are on-the-go and convenient, Cocoroons would be a great business to
respond to the demand of Filipinos for on-the-go snacks.
To present the 5 porter forces model, may I call in Ms. Christine Joyce Dela Cruz.

Christine:
Five Porter’s Forces Model
The Threat of New Entrants is set to moderate because the business and product are
both simple to set up. They have contacts in their target markets as well. All they have to do
now is ensure the product's relevance after it takes off by maintaining its convenience by
preserving its useful and gratifying flavors.
The Bargaining Power of Buyers is set to moderate because of the possibility that the
price of raw materials would increase due to inflation affecting the price of the product.
The Bargaining Power of the Supplier is set to a low level because there are many
suppliers of coconut around places and ingredients are most likely to find in every corner than
their main supplier with a low switching cost.
The Threats of Substitute Product is set to high level because when it comes to
pastries or baked goods, there are several alternatives that are ready and easily available in the
market. Many well-known bakery chain companies and even individuals sell the same product
“macaroons” as well as close substitutes such as certain pastries.

The Competitive Rivalry of the business is set to moderate because there are already
existing businesses that are selling macaroons, especially in bakeries and Pasalubong centers;
however, the company will be the first to supply different varieties of flavor in the said target
market that can lead to creating customer loyalty that generates increased leads.

To continue with the SWOT Analysis, may I call in Mr. Benny Ferrer.

Benny: I will now present to you the strength and weaknesses of our business.

Strengths

Variety of Flavors - Variations of flavor are considered a strength by the company as it allows
the consumers to choose the flavors that they want. Flavor also generates interest in the items
in the market.

Product Uniqueness - Compared to others, this business offers more than a variety of flavors,
but also quality and affordability leading the company to be more product-oriented and open to
more innovative ideas for the product.

New to Market - Introducing a new product to the market makes the consumers curious about
the product and allows them to try the product to satisfy their curiosity.

Weaknesses

New to Market - Since the business is new to the market, the business name is still not
established and it takes cost to market the product. Consumers might be also afraid of trying
new products since they value their money nowadays.

To continue with the opportunities and threats, may I call in Mr. Kha-yil Espinoza.

Kha-yil:

Opportunities

Online Platforms - Free market is the most viable benefit that can be taken from online
platforms. Through this, a wider reach of customers could be marketed.

Resellers - This business treats resellers as an opportunity since they can distribute the product
to a different bracket of customers.

Larger Market - The pasalubong centers in Pangasinan, as well as online selling platforms like
Shopee and Lazada, are the business's target markets. The firm will have a broader market for
its indirect target audiences, which include not only visitors but also online shoppers throughout
the Philippines. The company will have a larger market due to the indirect target markets
created by resellers and merchandisers, as well as the direct target markets created by them.
Feedback - The suggestions and feedback from customers can be an opportunity for the
business as it creates relationships with its customers.

Threats

Natural Disasters - Natural disasters are the greatest hazard to practically any business
because they are an unavoidable problem. There will be a scarcity of raw materials as a result
of calamities.

Original Macaroons - Some people might stick to the usual and traditional type of macaroon
since it is their most preferred type and they are not open to any changes and to trying new
products.

Bakeshops with well-established names - For sure, the well-known bakeshops would be a
great threat to the business since they have already loyal customers.

Imitations - Since the business is presenting a new idea for macaroons which is the variety of
flavors, some businesses might imitate the idea especially when the business became more
famous and marketable.

To present the competitors’ profiles, may I call in Ms. Gerald Grace Garcia.

Gerald: Our first competitor is Goldilocks. Goldilocks is a well-known Filipino - owned bakeshop.
The business has more than 600 stores across countries including the Philippines, Bangkok,
Thailand, Canada, and United States. They offer a wide range of cakes, desserts, snack foods,
and a variety of pastries such as brownies and macaroons. Indeed, Goldilocks has become a
part of Filipino family traditions and special occasions such as birthdays, family gatherings,
weddings, and many more. Due to the budget-friendly and delicious Filipino foods and dishes, it
is enjoyed by many people. Also, the business adopted a diversification strategy whereby one
branch can have a bakeshop, restaurant, and private events place. Lastly, the range of their
prices is around 30 - 900 depending on the products offered.

To continue, may I call in Ms. Joshiel Frias.

Joshiel: The Pastry Shop Dagupan is considered by the researchers as an indirect competitor.
This business competitor is a home-based bakeshop located at Dagupan, Pangasinan and has
an online store. They offer baked confections such as cookies, cupcakes, macarons, and other
pastries. The prices of their product range from PHP 120-240 depending on the pieces per box.
Their target markets are teens and adults residing around Pangasinan, while their selling
platforms are mainly on Facebook and on Instagram. As of the moment, they have 14,020 and
1,476 followers on their Facebook page and Instagram account, respectively. This indicates that
the business has a large market in the said province, thus it has been considered a solid indirect
competitor.

That would be the end of our Industry Analysis presentation. Once again, we are Group 3. Have
a great day ahead.