Chapter 3 External Assessment: A Framework for Organizational Strategizing

Micro Market Analysis by Edwardo A. Morato, Jr. DPA Reported by: Josephine G. Felicilda

 Micro markets are clearly defined locations or specific customer groups which an organization wishes to serve. -is a standard pricing policy ignores the differences in customer segments of specific stores within a regional chain of stores. The process of customizing pricing policies at the individual store level is known as micromarketing.

To determine the needs, wants and preferences of micro markets, the strategist must employ, finer analytical instruments. For a locational micro market, the analyst must obtain very accurate statistics on the demographic profile of the area.

 Who are the customers or client systems in the area?  What are their education, age and income levels?  What are their consumption patterns and behavior?  What are their values, interests, attitudes and motivations? Who else in the area serves these customers and clients?  What kind of goods they do offer?  What is their quality life?

 How satisfied or dissatisfied are the customers or beneficiaries? Locational analysis also involves making traffic counts( i.e. How many pass by the proposed or existing location, how many stop to look, how many drop in, how many actually purchase something and how much is spend per purchase).

 In assessing specific customer groups, the strategist can stratify or segment them according to several criteria: income, age group, lifestyle, motivation, psychological preferences and so on. Broad customer classifications can be narrowed down into finer segments if they manifested behavior of the different segment deviates from one another. If they do, then the various customer segments would demand

 different product features, pricing schemes, packaging materials and sizes promotional items, delivery system and locations. The definition of value for money would differ from group to group. If they do not differ than the strategist is better off aggrupating rather than segmenting costumers.

 One fast food vs. another (Mang Inasal vs. Jollibee). Other variants…  a. Chinese restaurant  b. Steakhouse restaurant  c. Coffee shop  d. Pizza  e. Turo-turo vs. another point-point  f. Fine dining  g. Casual dining

 Began as a two-branch ice cream parlor in 1975 offering hot meals and sandwiches became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept  The country’s leading fast food chain with more than 800 stores and more than 50 international stores  It is an American-style fast-food restaurant with Filipino-influenced dishes specializing in burgers, spaghetti, and chicken

 Philippine's fastest growing barbeque fast food chain, serving chicken, pork barbeque and other Filipino favorites, was first established on December 12, 2003 in Iloilo City. First Barbecue Fast food Chain in the Philippines Serving Chicken Barbecue or Chicken Inasal  Currently, there are 445 branches nationwide and with over 10,000 employees system wide. Company Background:

 A Greek inspired restaurant which provides the Philippine dining market one of the healthiest and richest cuisine in the world.  CYMA restaurants envision being the most preferred and respected progressive Greek restaurant chain in the south east.  Has 8 branches all over the Philippines.

 Jollibee and Mang Inasal belong in the same category (Fast food), the only thing that differentiate the two is the menu or the food that they serve. Cyma, on the other hand, is a high end, fine dining restaurant which is totally different from the other two (type of food, ambiance, price)  Since Cyma serves expensive dishes, their customers are usually people from Average to Upper class of the population. Specifically, coming from residential customers, managers, and executives from different companies.  Fast food chain intentionally make their seats hard, for higher customer turnover.  In fast food, people just want to eat and always “on the go”. While in Cyma, they want to relax and enjoy their dining experience.

    a-greek-taverna-eastwood-mall a-greek-taverna-eastwood-mall

 The strategist for these Fast Food on Micro Market study, first, Isolate the data on Fast Food. Second segregate the customer according to their income. Third carves out the age range of years old and fourth focuses on the service customer satisfaction.

 The most expensive process is the survey methods. To do a valid and reliable survey of customers or beneficiaries requires hypothesis formulation sophisticated technique of sampling (e.g. random, stratified and clustered)and another technique is to conduct a case study on the successful and even unsuccessful key players in the micro market.  They know who are supplying what, how much, where and when. They also know who are buying what, for whom, at what price and terms where and when. These information funnels are the gold mines of micro market strategists. 

Reaction on the Micro Market Analysis The Micro Market Analysis provide analytical and critical thinking process to help the strategist sift through the data and extract significant conclusions. This can also applied in educational setting wherein there is a need to analyze the different kind of courses to be offered to the students that would help them employ after their graduation. The performance of the students must be scrutinized and the rationally behind of taking the course. For example the K to 12 which was implemented here at University of Makati as a pilot school of this program. Students who are under this program are expected to be fully equipped with knowledge, skills and abilities as they finish their course so that they could land a job. That is why there must be a performance appraisal on the part of the students for their growth and development also the teacher who are teaching / handling a particular subject. The courses to be offered must also fit to the needs of the community for us to increase our economy and benchmark with the other country.

Thank you!!!