Micro Market Paper - Group1 Red Mango vs White Hat at Trinoma

Mastering Opportunity - Micro-Market Analysis

Seeking Opportunities

A report on Micro-Market Analysis through observation of two establishments in the same market segment - by Loewen Kho, Mark Bacalla, Aurelin Castrence-Fernando, Carlito Galamlam Jr, Mark Bacalla, Stephen Condino

The Researchers studied two brands in the Frozen Yogurt Industry namely Red Mango and White Hat. The researchers aim to determine who is ahead in terms of quality, facility and variety. The researchers used the branch to determine the factors why are customers buying from the said brand.  Now the researchers made a comparison between White Hat and Red Mango.

White Hat is 100% Filipino owned brand in the Philippines; which opened its first branch in SM MOA back in July 2008.  They came up with their own unique recipe from scratch, with the help of an Italian Gelato expert; coming up with a perfectly smooth and creamy with a slight tangy sourness.  They offer 21 toppings for their 98% fat free yogurt to appeal to health conscious urban young adults.

Red Mango on the other hand, is a top Fro-Yo brand which started in South Korea; now headqurtered in Dallas, Texas. They have expanded in the Philippines and opened it's first branch in Trinoma on January 2009.

The Tanmantiong Sisters, daughters of Jollibee President Ernesto Tanmantiong, were the one who brought Red Mango here in the Philippines  Red Mango's global push is to position it to be the "Starbucks" of the Fro-Yo world; creating the "Coffeehouse environment. They wanted it as a meeting place or a place to chill out and relax.

 "Red Mango offers all-natural, probiotic-packed frozen yogurt, smoothies and iced teas." –  Rethink Frozen Yogurt by Bozell and Jacobs Case Study.

Red Mango is also dependent on flavors and recipes provided by the parent company. However, Red Mango Philippines has the flexibility to choose which ones to carry locally. White hat on the other hand, being wholly Filipino owned, developed it's own "perfect" flavor and has more flexibility in terms of flavors, recipe and product offering. 

Customers

            The researchers asked customers of each establishment under study to answer a survey form to accurately determine the demographics, psychographic, and brand awareness of the customers. The survey results reveal that both cater to the same target market: urban professionals ranging from 21 to 30 years old with high brand loyalty; proving that both companies did the right thing when they extensively ensured flavor, consistency, and quality.

Location

Red mango has 7 branches in the Philippines: 6 in Metro Manila and one in Cebu. Red Mango is located at the 3^rd Floor of Trinoma's Wellness Zone where establishments like Fitness First, Belo Medical Group, Healthy Options, Powerbooks and Toys R' Us are in.

White hat is located at the 2^nd Floor of Trinoma Mall's Sport Zone fronting the Escalators in plain view of people coming from the 1^st and 3^rd floor of the mall. It has 15 branches in Metro Manila and 5 branches in other provinces.

The location of the kiosks proved to be very important in capturing the targeted market. The Wellness Zone is populated by the health conscious, sports minded, and family oriented. People goes to this area with a specific purpose: Skin Care, buy a book, buy an appliance, or buy a toy. Often, when buying a toy or an appliance, they come as a group. Some would buy a book and would desire a place to chill out and read. Others, while waiting for family members or buddies would get attracted and buy refreshments. Red Mango positioned itself quite perfectly. The Sports Zone comprises of people shopping for sporting goods. Although most would only stroll to check out what's new, passing by White Hat can be irresistible. Since the price is not too much for them, people occasionally stop by to get something. For White Hat, the dining area is bigger and the establishment beside it offers more seating capacity as well as variety. Fronting the escalator gives White Hat better advantage. Nonetheless, Red Mango is positioned right at the back of the escalators, which also has its own advantage.

The location is key in the difference between the two establishments in terms of secondary market. The survey revealed that there are more students going to White Hat. For Red Mango, its secondary market belongs to the 31-50 age groups.

Price and Offering

Both establishments almost have the same pricing for Yogurt: Php90.00 for 40oz White Hat Yogurt and Php85.00 for the same size with Red Mango. Toppings are priced similarly as well. Red Mango offers more selection: Waffles, Coffee, and Tea. White Hat, on the other hand, is located right beside another kiosk offering pastries. The researchers were not able to determine if both kiosks have the same owner.

Process and Technology

Red Mango employees seem to have more expertise with their products. They seem to have more complicate processes and have bigger working for making waffles, blended juices, and coffee. This ate up dining space but allowed them to offer variety. White Hat employees have limited space; just enough to be able to process orders.  But they process orders quite fast. Both establishments have a yogurt mixer and freezer spitting out quality frozen yogurt.

Conclusion

Survey result reveals high brand loyalty with Red Mango slightly having advantage on Product, Packaging, Price, and staffing. White Hat has a slight lead on promotion, placement, and Physical environment. Overall, they compete head to head, none leading, neither losing. They have their own set of loyal patrons and both capture their market well.

 

CUSTOMER SURVEY FORM
CUSTOMER BEHAVIOUR
	WHITE HAT = 34		RED MANGO = 20
	YES	NO	YES	NO
Did you know what to order already?	19	15	14	7
Did you take time to check choices before ordering?	Yogurt (Plain) - 13;  Toppings - 10; Monkey's Hat - 3; Make Your Own - 1; Baker's Hat - 3; Cooky Hat - 1; Chocolate - 1; Healthy Hat - 3; Peanut Butterball Waffle - 1; Waffle - 1; Cobbler's Hat - 1; No Reply - 6	8	10	10
What did you order?	Yogurt (Plain) - 13; Toppings - 10; Monkey's Hat - 3; Make Your Own - 1; Baker's Hat - 3; Cooky Hat - 1; Chocolate - 1; Healthy Hat - 3; Peanut Butterball Waffle - 1; Waffle - 1; Cobbler's Hat - 1; No Reply - 6		Yogurt with toppings - 9; Waffles - 2; Greentea with toppings - 4; Plain - 1; Tropical Crush -1; CAT - 1; No Reply - 2
Did you stay to finish your order?	34		20
How long did you stay in or near the kiosk?	1 hour - 4; 30 to 45 min - 8; 15 min - 4; 1 to 5 min - 7; after we finished - 2; no replies - 9		2 hrs - 1; 1 hour - 4; 30 min - 4; 15 min - 4; 10 min - 2; 5 min or less - 1; No Reply - 4
How often do you buy from this store?	2x a week - 2; 1x a week - 4; whenever I see a branch/I can - 2; 2 to 3x a month - 7; 1x a month - 4; sometimes - 3; seldom - 4; first time - 4; no reply - 4		3x a week - 1; 2x a week - 2; 1x a week - 5; 2-3 x a month - 3; 1x a month - 2; depends on my mood -1; occasionally - 1; often enough - 1; everytime I'm in the mall - 1; first time - 1; seldom -2
	YES	NO	YES	NO
Do you know of other competitors for this product/store?	25	9	15	5
Please identify 1 or 2 competitors:	Red Mango - 19; Tutti Frutti - 8; Froyo - 6; California Berry - 3; Golden Spoon - 1; No Reply - 9		White Hat -11; Golden Spoon - 3; YohFroz - 5; California Berry - 2; Tutti Frutti - 4; Fruity Froyo - 1; TCBY - 1; No Reply - 4
Do you buy from them too?	23	11	14	6
From which store do you buy most often?	White Hat - 17; Tutti Frutti - 3; Red Mango - 3; Trinoma - 2; Froyo -1; K. Rogers -1; No Reply - 7		Red Mango - 9; White Hat - 3; Trinoma -3; California Berry - 1; No Reply - 2
ESTABLISHMENT SURVEY
How do you find the price?	cheap - 0	reasonable - 24	cheap	reasonable -14
	expensive - 6		expensive - 5
How do you find the service?	caring - 15	un-caring	caring - 11	un-caring
	attentive - 24	lousy	attentive - 7	lousy
	pleasant - 18	unpleasant	pleasant - 13	unpleasant
	friendly - 17	unfriendly	friendly - 10	unfriendly
How is the speed of service?	fast - 23	slow	fast - 11	slow
	fast enough - 12	a little slow - 1	fast enough - 9	a little slow
Is the place clean?	clean - 32	dirty	clean - 20	dirty
	not so clean - 2	not so dirty	not so clean	not so dirty
CUSTOMER INFO
Age	0 to 10 - 0; 11 to 20 - 7; 21 to 30 - 20; 31 to 40 - 3; 41 to 50 - 2; 51+ - 2		0 to 10 - 0; 11 to 20 - 2; 21 to 30 - 6; 31 to 40 - 5; 41 to 50 - 5; 51+ - 2
Came singly or with a group	SINGLE - 8	GROUP - 26	single - 2	GROUP - 17
Occupation	student - 12; manager - 3; IT consultant - 3; airline employee - 2; employee - 3; lawyer, housewife, info officer, programmer, PTA, Librarian, Entrepreneur, Banker, Freelance Model, sales executive.		Businessperson - 4; Employee - 7; Housewife - 3; Consultant, Chef, Interior Designer, Student - 2, Art Director
Gender	Female - 20; Male - 14		Female - 11	Male - 9
Educational Attainment	Post-Grad - 3; Masters - 2; College - 24; HS - 5		Post Grad - 1; College - 16; HS - 2; No Reply - 1

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