COMPANY'S SWOT ANALYSIS
Strengths
1. Perceived superior quality products (freshness and taste, awards)
2. Wide coverage and distribution, and top the line production (extensiveterritorial distributors; 6,000 loaves per day)
3.Ability to make rapid expansion
4. Supported by a conglomerate with proven market success (QAF Group)
5. Growing flank product lines
6.Multi-awarded company
Weaknesses
1. Limited availability/penetration to lower-end market (sachet economy)
2. No stand-alone stores
Opportunities
1. Growing economy and rising middle class
2. Improvement on market coverage and distribution
Threats
1. Convergence of competitors
2.Bargaining power of retailers
3.Inflation and tariff
4.Global economic crisis
COMPANY'S STRATEGY
New users can be in the form of new customers. Gardenia Bakeries, wit hits sound financial position and affiliation, would allow it to either set up anew plant in Mindanao area to capture the undeserved area. Not only would it create jobs, this strategy would also allow Gardenia to minimize intermediaries, enabling better inventory and logistics control.Meanwhile, to capture non-users such as those who rely on rice, crackers,cereal, corn or any readily-available food, Gardenia should craft and organize marketing efforts to create a desire for the products. Dedicated salesmen should be assigned on this particular project to facilitate feedback mechanism. One example of creating a desire is by engaging the services of celebrities which the target market can highly associate themselves with.For increased/more frequent usage, Gardenia can find creative ways on how to stretch use of its products, stepping out from its usual bread as sandwich or merienda image.To defend its market share from “cottage” bakeshops as well as the emerging franchise like Julie’s Bakeshop, Gardenia should further strengthen its Gardenia Pushcarts to enable improved penetration on grassroots level. This, or Gardenia, if it would like to maintain its current branding and market image, can establish a new company that would specifically cater the under served market, reminiscent of Jollibee’s Mang Pepe.On the other hand, behemoth conglomerates like San Miguel Group,Gokongwei Group, or similar group that has the financial capability to develop and distribute products to compete head-to-head with Gardenia should also be considered. Gardenia should be mindful of any business dealings that might prelude this to make pre-emptive counter-measure strategies. To protect its position in the market, Gardenia should reinforce market’s association with the product. Citing years of relationship since 1997 would send a message to the consumers of the continuing commitment of the company in ensuring quality food in every table, freshness in every bite. Years of uninterrupted dominance in market would give Gardenia the advantage over the new entrants.Finally, diversification of products could also be an alternative. Entering the beverage or bread spread industries, while risky, would serve as flankersto the core product line of Gardenia Bakeries.