The Original Buko Pie

Laguna is known for having some of the best, if not the best, buko pies in the
country. The problem, however, is that there are far too many buko pie shops along
the main thoroughfares, and each claim to be the first or the original maker of the
famous pie. But the true, original inventor of the buko pie is found in Los Baños,
Laguna. In fact, the owners would have wanted “The Original Buko Pie” to be their
trade name, except that the Department of Trade and Industry forbade the use of such
as claim or adjective as a brand. Eventually, they resolved to name their bakeshop
Orient, which was short for Original Enterprise.
Buko pie is now considered to be a traditional Filipino dessert. It is made from
young coconut (buko), combined with sweetened condensed milk to make a dense,
creamy custard filled with buko meat. Once only available in the Philippines, today’s
buko pie makers—and there are a number of them—make use of blast freezing
technologies to make these frozen pies available for export as well.
Orient Bakeshop began its operations in 1965 and today remains as a family-
owned business. For over 60 years, the business had just one outlet in Anos, Los
Baños. But it became a very popular outlet, with a long queue of customers regularly
seen lining up by the side of the National Highway where the store is located.
Meanwhile, other imitation buko pie shops around its periphery get only a small
fraction of the market.
While this long queue may seem like an advantage at first, it is also a problem
as customers complain about the inconvenience of having to travel all the way to Anos
just to buy their products, only to be faced with such a long waiting line. Still, for the
longest time, the owners had the opinion that it was a matter of pride that people went
out of their way to buy their products. “We wanted to be the choice and not just an
option,” says one of the owners.
It was not until 2013 when the company finally decided to open a second
branch, this time along the Sta. Rosa Tagaytay Road. As with the original branch, the
second branch did its own baking in-house, rather than relying on deliveries from the
main branch because the branch performed decently, with queues happening as well,
but its sales nevertheless hovered at just around 70% of that of the main branch. In
fact, while the main branch consistently hit its sales targets, the Tagaytay branch was
only hitting around 70%.
So what makes Orient buko pies better than other bakeshops? “We only use
natural ingredients. No preservatives and we do everything by hand. No mixers,” says
its general manager. “But what people say distinguishes our pies from the rest is the
filling. We only use coconut that is harvested the same day. So if on a certain day, we
only get a thousand coconuts, that is all the pies we are going to bake. When we run
out, we run out.”
Moreover, the general manager believes that the best coconut meat comes
from 40-day-old coconuts harvested in Laguna and Batangas. Therefore, they have
stringent standards regarding the quality of the coconut meat that they receive. If the
delivery fails the quality control check (because it is either too hard or not cleaned well
enough), then the vendor gets it back. Each buko pie requires about four to five fresh
coconuts’ worth of coconut meat.
On average, their daily sales range from 500 to 1,000 pies, with the original
branch typically selling 1,000 boxes a day during peak season and half of that during
non-peak seasons, while the Tagaytay branch sells about 500 boxes during peak and
300 boxes a day during non-peak seasons.
Orient’s biggest competitors in the buko pie market are (1) Colette’s Buko Pie
and Pasalubong, which had about 40 branches across Laguna, Tagaytay, Batangas,
and even in Cebu; (2) Lety’s Buko Pies, which offered different pie sizes and had at
least four branches around Laguna; and (3) El Mare Buko Pie, with just one branch in
San Pablo, Laguna.
Lety’s Buko Pie has in fact, been aggressive in pursuing the frozen buko pie
market. Frozen buko pies has become a product strategy that, because of its longer
shelf life, allowed the business to export its products as well as provide it with the
capability to open market stalls nationwide. This is a market that Orient has not
explored at all.
The family behind Orient Bakeshop is wondering about their growth option. Was
opening the Tagaytay branch a good decision, or should they just close it down and
improve production capacity at the original branch instead? Should they follow the
aggressive roll-out of Colette’s and pursue a wide distribution network? Should they
venture into frozen buko pies?

Case Study:

For over 60 years, the family's buko pie business had already established their
name in Laguna. Within that span of time, the business was able to gather numerous
customers causing long queue regardless of how far the customers would have to
travel just to get to taste their delicacy. Upon the business' entry to Tagaytay, their
daily sales range was not that comparable to that of the original outlet's sales. It should
be noted that the family's business has just been introduced to the locale of Tagaytay.
As to the quality of product the business has been serving, there is no doubt to that
since they have been serving fresh produced buko pies to the market. The family just
have to exert extra efforts in making their products known to the area. If the business
had made it through in Laguna for over 60 years, why cant the business make its way
in Tagaytay also? So, in our opinion, the family should keep the Tagaytay branch.

Orient Bakeshop is a long-run family owned business for buko pies. They are
the pioneer and original buko pie producer in Laguna that branded the place as the
best buko pies in the country. With the legacy they have made, people would always
look for the said bakeshop to experience the delightful delicacy Laguna could offer.
Tourists and even the settlers would effort to form a lengthy line just to enjoy and
satisfy the pleasure of its delectable taste. Who could never resist their buko pies made
out of fresh ingredients with no preservatives added. Because of the image they have
built, surely people would be enticed to go after their shop even it would cost their
time, money, and effort.

“To become the number one and cornerstone in the Buko Pie industry while
making positive impact on customers’ satisfaction.” Being the original buko pie
inventor, it is but important to continue being the market’s standard of the taste of
buko pies. With this goal, the business will have to continue to establish and develop
strong presence in the community by improving the taste of the buko pies. While
establishing a strong presence, the company must study the competitive environment
and listen to the feedback of customer and adapt. While keeping the old tastes that
keeps the Orient Bakeshop distinct from the others, the company will respond to
changes that is necessary to address all the demands.

Change is inevitable. The world is evolving rapidly and in the business industry,
it is important to not be left behind. The industry and market are changing over time.
You may keep the old while making new. Entering into frozen buko pies may mean
new profits and new opportunities for Orient. Orient may be known for its old way of
making buko pies but is not bad at all to venture and integrate new technologies or
ways that may improve customer satisfaction; hence, they can enter into a new market
that would improve the company’s success.