Red Crab Group Analysis - Athens Cruz

Case Analysis: RED CRAB GROUP: Developing Multi-Brand Restaurant Concepts

I know Red Crab especially the one in Greenbelt, but I have never been there; and probably never will. Too many people are giving compliments to the restaurant for serving great food, but from the time that I was in Makati working, it never occurred to me to have a meal there. It was a little over my budget and I’d rather spend my money elsewhere.

Relevant Facts

·         From an “inspiration” from his mom, Raymond Magdaluyo was able to establish restaurants with different concepts under the Red Crab Group.

·         There was a paradigm shift for the group in terms of the concepts of their restaurants as it initially started “without a personality”.

·         When the restaurant’s operation went bad, the owner decided to reposition themselves by focusing on what defined the restaurant and its local followers. Wherein Raymond became confused as to what and how they should go about rebranding.

·         After the market research, Raymond knew the age bracket they cater to and adjust it accordingly.

·         Repositioning of the restaurant has led to the change in menu and understanding that more than becoming a Filipino restaurant, he wanted to be identified as a seafood restaurant. An international flavor.

·         It was a seafood restaurant, selling the experience with a festive atmosphere.

·         The Red Crab Group took a risk and was able to identify the market it wanted to tap. And created an opportunity for them to venture in. It segmented the market in three categories: micro-market; food type; and, motivational group or the influences it received. Along with the segmentation, it categorized the pricing strategy for each restaurant concept.

·         Just like other restaurants or companies it diversified the product line, which is big breakfast, something beyond the usual seafood restaurant conceptualized.

The story of Red Crab Group can be regarded as a success story, with a trend of an initial boom, then slowly decrease in the market share, and eventually reinvent itself and gain back what they have lost. This pattern has allowed owners to look for other means to increase profitability and gain advantage in market share.

Few of the strengths that were seen in the case were: the restaurant knew the direction it is heading and use that to its advantage. Second, the different concepts of the restaurants caters to different market or segments in the market.

The weakness of the company is that it placed itself too much of the high end side that some of the age bracket it targets would not normally spend money on food such as these. The price and location also intimidates new young professionals. I myself am intimidated going in.

Meanwhile, there are many possibilities of the concept they have with the restaurants. One concept they can create is to make a fast food shack of seafood that will cater to the busy life of the young professionals near them; I am considering the locations Alabang, Greenbelt and Tomas Morato. This can invite more seafood enthusiasts who were intimidated by the price and location of their restaurants.

On the other hand, because of the perception of “high-end” restaurant, it can drive away potential customers because there are a variety of choices left for the customer. On a lower price range but still satisfying. This is either a substitute of restaurant or product or a threat of new restaurants with almost the same concept.

Alternatives

Entering into a totally new business is a risk. And in any business you really need to take a bold step and not just test the waters but to really explore it more and more. Heaven ‘n Eggs can help other new customers enjoy the typical type of foods eaten during breakfast.

·         Red Crab Group can open a new concept of a restaurant, in line with the seafood restaurant concept, but priced lower and will serve like the typical fast food.

·         Offer a different concept of restaurant but will also cater to foods offered at a lower price.

·         Attract young professionals, especially in the Makati area to boost the brand name. And make the brand really strong to increase profit.

Decision and Action

The decision of the top management will vary depending on the availability of resources and the potential market. There will always be a need for restaurants because food is a necessity more than a want. However, eating on a pricey restaurant is reserve on a special occasion. Although, Red Crab Group has already segmented their market in three categories, it needs to do it more specific. For example, one category can be the specific age brackets, they can also estimate the financial bracket of customers to identify the pricing strategy of the group, or do more promotional campaigns that could help other people understand what the brand is and what is expected from the brand.

With the new trends, Red Crab should be able to analyze and understand the market and compete side by side with any potential threats. The market research should be specific to their concepts.
Sincerely,

Athens S. Cruz
+63 916-7056719

One Day Singapore Food Trip by Crissy Cruz

One Day Singapore Food Trip

I was fortunate enough to join an incentive trip for our company last March 4-9. After the scheduled Southeast Asian Cruise that lasted for four days, we had an overnight stay in Singapore before heading back home.

It was my second visit in Singapore and made the most out of the short stay by trying out 3 new food establishments: Crystal Jade Golden Palace, the Cookie Museum and Makansutra Glutton’s Bay.

Crystal Jade Golden Palace is a traditional Chinese restaurant located in Paragon Mall, one of the high-end shopping centers along the famous Orchard Road. It has been consistently one of the top Chinese Restaurants in the country based on customer feedback and online ratings. Crystal Jade is an international chain of restaurants present in 18 cities in f countries. It has successfully developed multiple themed restaurants under one brand that caters to different markets.

Unlike other Chinese Restaurants, Crystal Jade’s Golden Palace had very modern interiors. The interiors looked were made up of muted dark walls and yellow lights dimming the place in the right spots. The ambiance was almost too formal for an afternoon lunch. All guests are assisted inside and people without reservations had to patiently wait on the outer lobby. Each table had dedicated servers that were very attentive to all requests.

The highlight of the whole dining experience was the food. Crystal Jade’s Roast Pork and Eggplant with salted duck egg batter were standouts. The Roast Pork was perfectly cooked with a crispy layer skin. It was juicy without being too greasy. The Eggplant with the salted duck egg batter was a novelty for me. It had very unique flavors with the use of just simple ingredients.

In terms of pricing, a full meal would cost you at least Php 1,000 per head. It is pricey for a Chinese Restaurant considering that there are lots of cheaper alternatives outside. However, the success of Crystal Jade’s Golden Palace lies on the unique dishes it serves it customers. It gives guests a chance to enjoy both the traditional and modern Chinese cuisine in a very sophisticated ambiance.

All in all, the Crystal Jade Golden Palace delivers what it promises and that is an excellent fine dining experience composed of exceptional Chinese Cuisine and top customer service.

For a unique “pasalubong”, we headed to Esplanade Mall and visited the Cookie Museum. Singapore is not primarily known for its pastries however; the Cookie Museum has been making a buzz for its distinctive take on Cookies and Tea. The Cookie Museum boasts of being voted as the best cookies in Singapore

The innovativeness of this restaurant comes with the variety of cookies they offer to customers. There are more than 40 different flavors of Cookies to choose from that can only be found in the Cookie Museum. Some of their flavors include favorites like English Lavender, White Almond Truffle, Eves and Rosas. There are also flavors for the adventurous like Nasi Lemak, Hainanese Chicken Rice, and Coco Panda. They also come up with limited edition flavors like Strawberries and Champagne. The packaging is also exquisite. The cookies are placed in beautifully designed tin cans perfect for the delicate cookie flavors.

The interiors of the store are Victorian inspired. It’s like being transported into an English tea room in the Victorian Era with intricate pieces of furniture in bright colors. Masquerade masks are placed in table tops as an added touch to the Victorian theme. Customers can taste all the flavors with the assistance of one of the shop keepers.

However these delicious goodies comes with a hefty price that might turn off some customers. A can of cookies costs SGD45 or around  Php1,500. Nonetheless, the Cookie Museum can be considered as a success and continues loyal patronage from locals and tourists who find their product offerings unique enough to merit that kind of price. It has now expanded to

multiple branches in Singapore and has a potential to go global.

 Outside the Esplanade Mall is a good view of the Marina Bay Sands and the MerLion Statue. On the side of it I was also surprised to see a hawker center where all kinds of street foods can be found. The hawker center is called Makansutra Glutton’s Bay. It is an outdoor food court with a long line of stalls that offers diverse Asian cuisine from Singaporean, Chinese, Thai, Malaysian and even Filipino. One of the stalls were managed by Gerry’s Grill. Mono bloc tables and chairs fill up the space in front of the long line of stalls where customers can eat their food in groups.

The cost of the food was relatively cheaper compared to the fine dining restaurants inside the mall. The ambiance is very casual and the mood is very relaxed. It is a good place where you can eat and drink until the wee hours of the morning. It reminds me of local banchettos and turo turo stalls, only the main difference is Makansutra Glutton’s Bay is part of a high end establishment complex.

This hawker center stands out not only because of the diverse food choices but most especially because of its good location. You can get a good view of the lights show of the Marina Bay Sands at night and there are musical shows and performances in the central outdoor stage of the esplanade that visitors can enjoy. This is all an added bonus to the value for money delicacies you can find along Makansutra’s Glutton’s Bay. It’s no wonder that it is consistently packed with locals and tourists at night. Makansutra’s Glutton’s Bay is one place I would definitiely visit again the next time I go to Singapore.

Three Entrepreneurial Clans in Asia Case Study by Crissy Cruz

Three Entrepreneurial Clans in Asia Case Study by Crissy Cruz

The Case Study of the Three Entrepreneurial Clans in Asia featured 3 Family conglomerates from different Southeast Asian countries.

First there was the Raiva Siblings and Spouses of Thailand who had a restaurant and bakery empire. The Raiva’s S&P mainly focused on food related enterprises that would support their core business of managing their restaurants and bakeries. For example they ventured into developing the technology of making and distributing frozen food products in order to reduce wastage and extend the shelf life of their food products. S&P had a They also partnered and operated with well-known international food chains and brands such as Pizza Hut, Swensen’s in Thailand and Haage-Dazs Ice Cream.

The Second Family featured is Tunku Abdullah and his Royal Brood from Malaysia. Tunku Abdullah enjoyed the advantages of being a royal and had lots of connections that enabled his family to establish Melewar Corporation as one of the biggest conglomerates in Malaysia. Melewar Corporation has diverse interests that range from property development and construction, tourism, transportation, advertising, marketing and public relations, and TV broadcasting.

Finally, the Third family is Indonesia’s Ibu Mutiara Djokosoetono and the rest of his clan. Ibu Mutiara Djokosoetono established the Blue Bird group which initially featured transportation services and later expanded to non-transport services like manufacturing of engines and spare parts of their fleet vehicles in order to stretch their supply chain and resorts that are considered as passenger destinations therefore boosting their transport services business.

The Case Study rationalized the actions of these three conglomerates and discussed them according to theories of Multiplication, Subtraction and Division process in managing their businesses.

All conglomerates practiced addition and multiplying their business ventures in various manners. The Raivas have done it in a more focused and concentrated manner that supports their core business of restaurant and bakery operations. The Melewar group had a “shotgun approach” and grabbed every opportunity that seems viable. They classified their businesses into industry groups, Travel and Tourism, Insurance, Manufacturing, Shipping, Security, Property Development, and TV broadcasting.  For the Blue Bird group of Ibu Mutiara Djokosoetono, it can be noted that their businesses don’t really have market focus but instead just a common denominator. All enterprises are related to various modes of transportation and anything that supports its operations and possible expansion.

Out of the three conglomerates, the S&P group didn’t had to prune much of their collection of enterprises since they have been very conservative in their expansion activities and only choosing to add companies that would be beneficial to their original core business. However, the Melewar group’s shotgun approach had le them to encounter some failed ventures in computer manufacturing and agriculture. These two businesses required heavy R&D and complicated production process, In order to recover losses the Melewar group decided to let go of these businesses and further sell their TV broadcasting company.  The Blue Bird group also weeded out their agribusiness which is a far-fetched business concept from their transportation related businesses. This only goes to show the importance of venturing into enterprises that are outside of the organization’s core competencies and other strengths.

As a conglomerate ran by families, the different companies had their own styles of management that involved immediate family members.  Expanding the business was done not only to ensure further income and growth for the company but also to make sure there is enough to divide among family members. It provides opportunities for everyone to participate, pass on the legacy and perform specific areas of responsibility.

With all these in mind, which among the three families has exercised the best strategies in expanding their businesses. I admire the Raiva’s S&P group in sticking to what they do best and building the foundation of their business empire based on the requirements or what compliments their bakery and restaurant business. This shows an example of good personal mastery. The Melewar and the Blue Bird group took a different route and expanded their business with investments in fields not part of the same market. Not all the risks they took paid off and some enterprises had to be cut. Those failures do not merit a conclusion that Raiva’s S&P group made better management decisions. I believe that entrepreneurship is about taking risks. Melewar and the Blue Bird Group grabbed opportunities and made the most out of them.  The failures that they encountered were just bumps on the road and what’s important was they knew how to let go of the things that operated below their expectations. Again, this is another example of self-mastery. We learn by knowing ourselves and by the mistakes that we have done.

In the Philippines, it is evident among the big conglomerates made up by the Sy’s, Gokongwei’s and the Tan’s that their interests are all diverse but in a way related to one another. It is not imperative for conglomerate to just stick to one core business as long as they are able to manage well their enterprises and are adding to the over all profitability of the group. Diversification can also protect the company in losing a lot of resources once one of the industries collapses. A diversified conglomerate would give them power and control over more markets. In return, these interests will pay off by opening new doors and opportunities for them to grown as a conglomerate and be one step ahead of competition.