MARKETING ASPECT

a. Overview of the Industry Situation

Over the years, the innovation of existing cafés has boomed; from simply serving hot
brewed, cold brewed and specialty coffees, to offering a variety of food such as, to name a few,
cakes, sandwiches, pasta and rice meals, to displaying actual dogs inside the café and allowing
customers to interact with them as a form of gimmick. The innovation of various cafés across the
country is principally based on the trend and changing customer preferences. Moreover, the
increasing number of cafés has positively contributed to the Philippine Economy as the country’s
daily consumption of coffee is continually growing, according to the Vice President of the
Management Association of the Philippines in an article written by Chit Juan in Philippine
Inquirer. “… Innovation is not just defined as “the next hot thing” – it’s critical to ensuring the
sustainable growth of an industry.” (Semroc, 2017)

In the recent years, people who often visit cafés have grown from merely eating and
drinking to relaxing and de-stressing. Pets are known to be effective sedative, especially to
people who are stressed from home, school or work. Many Filipinos are fond of playing with or
having pets, specifically dogs. In fact, Lorenzo Subido stated in his article How This Café Owner
Is Cashing in on Filipinos’ Love for Pets in Entrepreneur Philippines, ‘‘The Philippines is one of
the world’s largest pet owning nations. Australian pet insurer Petsecure lists the Philippines as
one of the top 10 countries with the biggest dog population. The US government said the
Philippines was the 10th biggest importer of dog food from America.’’ This has paved the way
for dog cafés to boom in the country.

As of the end of 2017, five dog cafés have already been established in the country since
2014 with Barkin’ Blends being the first. According to Aclon, owner of The Pet Café, a dog café
is basically multi-faceted in a sense that it attracts people from different ages, gender and market
classes. In his first year in the industry, he reported revenue of PHP 566,000. Aclon is positive
that the dog café industry will grow in the next few years.

In Zamboanga City, though a good number of cafés have been put up through the years,
none of which has a unique gimmick. The proponents, therefore, are looking to establish a café
in the city wherein the customers have the chance to play and interact with dogs.
b. Description of the Market

More people in the past years have started to become fond of drinking hot and cold
brewed coffees, specialty coffees, milkshakes and milk teas leading to the growth in the number
of established cafés in the city. People primarily tend to visit cafés to satisfy their cravings for
the food and drinks being offered. Moreover, some have other reasons for visiting the cafes aside
from eating and drinking. Students, for example, tend to have their meetings and group studies
done in cafes. Professionals, on the other hand, consider cafés as a go-to place when taking a
break after hours of working. Others intend to just relax while enjoying the nice café ambiance.
However, people have moved past to simply doing their meetings, group studies and relaxing in
cafés, they have finally come to a point wherein, in choosing a particular café to go to, they first
compare the unique gimmicks offered by various cafés.

On another note, the number of dog owners and dog lovers has increased in the recent
years. This is evident by the growing number of participants each year in dog fairs conducted in
the city. Aside from that, many households have also chosen to own at least one dog in their
houses as a safety measure against thieves. As a result, many people have become fond of dogs
and even named them as “man’s best friend”.

Furthermore, many dog owners have been introduced to dog cafés through
advertisements on television and on social media sites. Café goers who also happen to be dog
lovers, however, could not experience being able to play and interact with dogs while enjoying
café food and drinks as no dog café has yet been established in the city, unless one flies to Metro
Manila. This, therefore, highlights the significance of this study. It aims to cater to the needs of
café goers to experience good food and drinks, nice café ambiance and the chance to interact and
play with dogs.

d. Competitive Strength

In order to assess the potential of the proposed business, a careful analysis on the
presence of competitors must be done in order to account their likely impact on the proposed
business. Significant data were gathered and arranged accordingly (as shown in the table below)
to show the different characteristics of the popular cafés in the city. The table would also provide
clear information on the possible competitive edge of Furfé Dog Café among the other cafés.
ESTABLISHMENT PRODUCTS PRICE PLACE EDGE OTHERS

J.CO DONUTS - Donuts 42 PHP to KCC Mall - Easily 9am to

155 PHP de accessible 10pm
- Cappuccino
Zamboanga, because it is
- Frappe Ground located inside
- Latte Floor, the convenience
Zamboanga of a shopping
- Iced Coffee City mall
- Hot Coffee

BARNYARD - Milkshakes P. Rodriguez - Offers 10am to

COUNTRY Street, noncommercial 11pm
- Cheesecakes,
COFFEE Veterans food
- Pasta, Ave,
- Offers big
- Frappe Zamboanga
volume of
City,
- Iced Coffee beverages at an
beside affordable price
- Hot Coffee Budget Wise
and Bike
Stop
ARYA’S COFFEE - Iced Coffee 60 PHP to Veterans - In the vicinity 9am
AND TEA 140 PHP Ave, of various to 11pm
- Hot Coffee
Zamboanga offices, banks (Tue to
- Frappe Sat)
City and hospital.
- Tea
- offers gourmet
- Dessert coffees, lattes, 9am to
cappuccino, 9pm
mochas and (Sun
more with and Mon)
gourmet sauces
and Monin
syrups, which
known
throughout the
world for its
extensive range
of high quality
flavored syrups.

KITCHEN JOE’S - Coffee Nuñez Ext. - Affordable

St, coffee
- Smoothies
Zamboanga - Manufactures
- Frappe City their own coffee
beans (brewing
roasting, etc.)
 FURFÉ DOG -Coffee -150php Mayor -offers a new
CAFÉ to 250php Jaldon street trend café
-dessert Canelar, experience to
-pastries Zamboanga dog lovers
City
-

As shown in the table above, one characteristic that all of the cafés have in common is
that they only offer customers a place to unwind and drink their cups of coffee. Aside from the
aforementioned similarities, the cafes have no other gimmicks in store which set them apart from
each other, thus giving Furfé Dog Café the opportunity to stand out among them.

Furfé Dog Café abolishes the idea of a common café. Aside from it being a place where
people can unwind and enjoy their cup of joes and hearty meals, it offers something beyond what
the customers are accustomed with in a cafe. Aside from their usual activities in a café, they can
also spend their time playing with dogs inside. Various breeds of dogs, ranging from Chihuahua
to Shih Tzu, are available in the café for the customers’ entertainment. This certain type of
gimmick will serve as a complete different take on an ordinary café. Moreover, those who are
certainly not fond of dogs or simply do not want to physically interact with them, can still enjoy
their stay inside the café, because the dog area and café area are separated with a glass divider,
giving them a chance to take a glimpse of the dogs inside. This would give the customers an
opportunity to enjoy both things at the same time.

One of the major influences for a complete boost in the café business is its location. Furfé
Although J.Co (as shown in the table above) has the most edge when it comes to its location,
because it is located inside the city’s largest shopping mall, however, Furfé Dog Café’s location
is also viable for various reasons. Barangay Canelar, the proposed location of the café, is only
1.8 km away from the city’s airport; a great spot for flocking tourists and locals alike. The
location is also in the vicinity of various offices and recreational establishments. The area is also
not prone to traffic and has a reasonably wide space for parking, making it convenient and
accessible to customers owning private vehicles.

From the survey conducted, it showed that at least 75% was willing to visit a dog café.
This therefore proves that Furfé Dog Café has a competitive edge among the other cafés located
in the city, with another reason that this café will also be the first to employ dogs as
entertainment for the customers. Hence, this would offer the Zamboangueños a café that is not
only fancy, but also extraordinary. An ultimate game changer with the ongoing café trend in the
city.