Business Plan (PUP Marketing Student)

7/29/2019 Business Plan (PUP Marketing Student)

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

COLLEGE OF BUSINESS

Department of Marketing

MARK 3093

DISTRIBUTION MANAGEMENT

(BUSINESS PLAN)

TRUFFLELICIOUS

so del icious..

SUBMITTED TO:

PROFFESSOR JOCELYN C. GUEVARRA

SUMMITTED BY/S:

BAYOCA, ANA MARIE

CENTENO, JOSEPH PAULO

DACLES, MARA JANE

FATALLO, JULIE ANNE

FERNANDEZ, SYRIN

GUMACAL, DAYANARA

JAVIN, MA. THERESA

LABARINTO, ERON JOH


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TRUFFLELICIOUS

Its so Delicious

BUSINESS PLAN

BUSINESS DESCRIPTIONS

Trufflelicious is a NEW food service product of chocolate rolls with fruits inside it. It is a

corporation owned company. It intended to cater customers who would like to taste a healthy,

delicious, and new form of experience, and also it is for all ages and genders. With the warm

ambiance of our spacious store to our freshly baked cupcakes to the wide selection of innovative

coffee drinks and teas, you can also take home the Trufflelicious experience by getting a few

boxes of cupcakes to share with your family and friends. You can be sure that every celebration

is sweeter with Truffelicious.

GOALS AND OBJECTIVES

Trufflelicious business has a following goals and objectives:

To obtain necessary funding

To attain sales of more than P300,000 in the first year.

To be franchise to different malls in second and third year

To create a service-based company that exceeds customers expectations, and increases

the number of repeat clients serviced by at least 50% per year, through superior

performance and word-of-mouth referral.

To become an established community destination with a customer satisfaction rate of

90% by the end of the first year.

To achieve cash flow self-sufficiency by the end of the first year.

To expand to two stores by the fourth and fifth years.

KEY TO SUCCESS:

The keys to success for trufflelicious dessert include:

Reputation: Every customer visiting our store will want to return and will recommend us

to their friends and family. Word of mouth marketing will be a powerful ally for our

business.

Superior Customer Service: Knowledgeable, friendly service will be of t he utmost

importance.

Location: Provide an easily accessible location for customer convenience, including

walk-by and frive-by traffic.


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Product Environment: Offer a variety of high quality foods with domestic and

international themes, sold at a fair price in a clean, authentic, comfortable environment.

Convenience: Our customers will know that they can get what they need at our market

for a fair price.

MISSION STATEMENTS

Trufflelicious is a hospitality product dedicated to providing high-quality desserts in a

comfortable atmosphere for serving customer and giving them the satisfaction that they want in

a fair price, service, and community.

MARKET ANALYSIS

Trufflelicious focuses on local markets in Metro Manila, with special focused on

different parties, malls, schools and universities. On our 1st year in the industry, Truffleliciouswill focused on the students of Polytechnic University of the Philippines in Sta. Mesa, Manila.

Our market is divided into four different psychographics. They represent groups of

people sharing similar behavior patterns and reasons for patronizing trufflelicious.

COMFORT CREATURES are mainly white collar workers who are driven by success

and prestige yet this miss homemade comfort foods of their childhood. They may stop in

on their own or bring clients in for a delicious dessert experience. Even if they had a busy

and very tiring day with their career, they could find relaxation by eating truffles with

coffee on our stall. CELEBRATORS are people love to celebrate special occasions. Birthday, anniversaries,

graduation, valentines day, etc., Families could make an order to Trufflelicious through

different packages. So they can enjoy their family gathering with Trufflelicious.

SOCCER MOMS actually encompass all family members, for Trufflelicious is a

gathering place where families are welcome and feel comfortable. Moms can bring home

truffles to their children as her pasalubong. Or they can meet up with friends for tea

time with matching trufflelicious dessert- a little civilized time stolen in the midst of a

busy day.

STUDENTS people inside and outside the schools that potentially can buy the

trufflelicious. For most of the students love chocolates. This could give them energy and

feel relaxed. In the first year of business, we personally focused on PUPs students to

gain more profit.


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Market

Analysis

Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5

Comfort Creatures 10% 10,000 11,000 12,100 13,310 14,641

Celebrators 15% 10,000 11,500 13,225 15,209 17,490

Soccer Moms 10% 10,000 11,000 12,100 13,310 14,641

Students 15% 10,000 11,500 13,225 15,209 17,490

Total 50% 40,000 45,000 50,650 57,038 64,564

Target Market Segment Strategy

We have successfully targeted segments of people with an appreciation for delicious

desserts and a need for comfort and relaxation. Trufflelicious is a haven for the busy and

successful who want to treat themselves to something soothing and little sinful! It doesnt take a

lot of time, yet is so rewarding. These people will value the high quality product presented

without pretension. Our customers will also appreciate the fun and fast servicewhether

celebrating a birthday or shopping to the mall.

Competetion and Buying Patterns

27%

33%

19%

25%

Sales

Comfort Creatures

Celebrators

Soccer Moms

Students


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Although trufflelicious is opening up a new niche in the desserts food industry, there is

no doubt that we are competing with a variety of similar business. We need complete against the

ideas that desserts is something that only follows a special dinner and neednt be and better than

a frozen cake. We want every day to be a reason to celebrate. And being able to watch your

gourmet desserts be prepared by a trufflelicious is a treat that appeals to everyone.

While price may be a factor when competing against other brownies, these same customers who

are willing to pay 12 pesos for a lattle truffles are already conscious of a better quality product.

We believe they will be equally as willing to spend a little extra for an extraordinary dessert in a

warm and friendly setting.

The comfort factor also pays an important role ing consumer decisions about sweets. Boyh the

atmosphere and staff of Trufflelicious excel at warm and friendly. And the menu will reflect

comfort food desserts as opposed to intimidating desserts. We will use the highest quality

products; sometimes paring the ordinary with the exotic, but we will always present our desserts

in an unintimidating manner.

MARKETING PLAN

1. PRODUCTS AND SERVICE

TRUFFLELICIOUS sells healthy desserts coupled with exceptional customer service in a

comforting atmosphere. We also offer to deliver our desserts at home or have a special different

truffles combination for a celebration.

Our products provide healthy and fresh fruit dessert truffles. TRUFFLELICIOUS is in a bite-

size. And it is made up of mashed cupcake or crushed chocolate cookies and cream cheese/cream

with real fresh fruit tid-bits, and then coated with melted chocolates. And can be sprinkled with

nuts, cocoa powder, confectioner sugar, and other stuffs.

We came up with this product because we thought that eating chocolate all alone is

somewhat boring and tiresome. So we think of something that can be combining with the truffles

to make some twist with eating of it. And then we came up of adding some real fresh fruit tid-

bits that can balance the taste of chocolates and makes it more nutritious because it contains

many vitamins and proteins. And now, you can enjoy eating chocolates without getting boredand afraid of having diabetes. Because TRUFFLELICIOUS provide you the sweet taste of

chocolates and at the same time, the nutritious from fresh fruits.

TRUFFLELICIOUS as a choice for celebrating, we will offer large reservations of truffles

that will deliver in their places. You can use TRUFFLELICIOUS as an alternative for cakes and


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cupcakes for your parties, such as, birthday, anniversaries, debut and such. We cater such large

volume of orders for those celebrations.

2. PRICING STRATEGY

Under in pricing strategy, we used the Cost-Plus Method of pricing. This method

determined how we price our products based on the overhead costs(rent, utilities and wages)and the ingredients used in the truffles. But we price our products based on the customer that

they afford it to buy.

We also used the Location-Pricing Method to make our product more profitable.

Food prices fluctuate often due to natural disasters or poor growing seasons. This

means that the stable price will change based on food expenses.

Now, how do we combine all of these calculations to come up with a price? Here are

some basic guidelines we used :

Our price must be enough higher than costs to cover reasonable variations in salesvolume. If your sales forecast is inaccurate, how far off can you be and still be

profitable? Ideally, you want to be able to be off by a factor of two or more (your sales

are half of your forecast) and still be profitable.

We have to make a living. Have you figured salary for yourself in your costs? If not,your profit has to be enough for you to live on and still have money to reinvest in the

company.

Our price should almost never be lower than your costs or higher than what most

consumers consider "fair".

3. DISTRIBUTION STRATEGY

Strategic distribution is a competitive advantage for a new existing product.

There are several different possible distribution channels that can be used as a distribution

strategy example for any product or service that a company is trying to bring to market.

Companies may focus on one of these channels to provide the best results, but they may also take

advantage of several different strategies. In many cases, using several different distribution

strategies can help a company maximize their connection to customers in order to put more oftheir product in the customers hands.

As a new existing product, it will help us to distribute our product through direct sales on the

internet and also by having a stall where the buyers can purchase our product.

We all know that most of people have already an access to internet, like in some social

networking site such as Facebook, Twitter, Yahoo and many more. We assume that once we


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were able to enter the world of such social networking sites, it will be easy to us to communicate

to our customers. We can simply post information about our company and products, as well as ,

we can easily take their orders and then delivered it to them.

And by having a stall to some places was also a help to us to distribute our product. All the

people can visit our stall and they can take their orders there and enjoy the TRUFFLICIOUS.Customers can purchase our products there and can also bring it on their places. Because we

have packaging that can be useful for their take-outs.

4. PROMOTIONAL STRATEGY

Trufflelicious promotional strategy will be education of the consumer and

subsequent word-of-mouth. We will become known as a unique dining experience as well as

a superior pastry shop. Customers will be reached through fliers, newspaper advertisements

and special holiday promotions.

Location will also play a crucial role in marketing and promotion. The business willbe located in high-traffic retail area different malls, school and universities.

Trufflicious will target progressive and generally well-educated and affluent

consumers who are interested in trying new products and experiences and are dissatisfiedwith the limited selection and lack of personal service found in grocery store bakeries,

neighborhood cafes and ice cream shops and area restaurants.

Every year, trufflelicious business will change its themes through improving of

products to make a great satisfactions from customer and giving some communityinvolvement to cater the social responsibility of the business.

SALES PROMOTION

Everyone . . . meets our truffles

to promote our product, we used flyers and word of mouth. we offer discount like for every purchase of one box of truffles well give 2 pancake

cookies for free.

every holiday we make special offers like molding truffles according to occasions.

in every special holiday our stall will be opened until 10 pm. we assume that on our 2

ndyear we will serve on debut parties and weddings.

Package A Package B

- truffle cake (50pcs) - truffle cake (50pcs)

- truffle float - give aways(50pcs)


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- give aways (50pcs)

OPERATIONAL PLAN

Business Permits And Licenses Processes

Business Permits and License

Step 1: Business Name Registration Certificate in Department of Trade Industry

-You may go to your Provincial Office. The Validity of this registration is 5 years.

Requirements:


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Accomplished Business name Registration form (for sole proprietorship/Partnership).

Tax Identification Number (TIN)

Lists of 5 Business names ranked according to preference.

Registration fee: P300.00

Step 2: Mayor's/Business Permit

-You can go to your local Municipality where the business is located. The Validity of

this registration is 1 year.

Requirements:

Accomplished Business Permit Application form

DTI Business name certificate

Sketch of the business location

Fire safety inspection clearence

Sanitary permit (city health officer)

Lease contract

2 pcs. 2x2 colored ID picture

Registration Fee (it depends on what type of business)

Step 3: Tax Identification Number (TIN) Bureau of Internal Revenue (BIR)

- You can go to the National Office.

Step 4 : Social Security System Certificate

-You can go in East Ave., Diliman Quezon City.

Requirements:

Accomplished R1 Form (Employer's Data Record)

DTI Business Permit

Mayor's Permit

Step 5: Department of Labor & Employment (DOLE) Registration (5 or more

employees)


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-Labor standard & enforcement Division

-Gen. Malvar St. Malate Manila

Requirements:

Accomplished Rule 1020 form

Kay out Business location

Vicinity Map

Step 6: Security and Exchange Commission (SEC) Certificate

-You can go in SEC Building Edsa Greenhills Mandaluyong City.

Requirements:

Verification slip form (Proposed Name).

Accomplished registration data sheet

Acticles of Partnership

Written under talking to change Corporation Name

If the contributed capital is in the form of property, additional requirement:

Deed of Assignmentexecuted by the stockholder who is the owner.

How to Make Truffles?

Ingredients:

Chocolate cupcakes (optional)

Fruit Cocktail/ Fresh Fruit

Cream

For Coating:

Dark Chocolate

Peanuts

Milo Powder

Sprinkles

Rice Crispies


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Crushed the chocolate cupcakes, and pour the cream and stir it until it turn thick. After it

mold the mixture on the desired shape. Next stuffed the fruit inside the molded mixture

and set it aside. For coating, melt the dark chocolate in the double boiler, when it is melted pour the

cream. And set it aside. Crushed the peanuts then set aside.

Coat the molded mixture in the melted chocolate and roll it into crushed peanuts or milo

powder or any coating you want. After that place it on the wax paper and place it on

freezer.

SUPPLIES AND EQUIPMENTS:

Refrigerator

Double Boiler

Mixing Bowl

Wooden Spoon

Wax Paper

STORE OPERATION

Our operation will start at exactly at 8am 8pm. One will assign to handle the cashier, and some

will make the truffles.

Everyone needs to be in the store at 6am, for some preparation of the store. Every employee specially the truffle maker must wear plastic gloves and hair net to observe the

cleanliness of the store.

In taking orders, it takes 1-2mins to serve the customers orders; customer must pay their bills as

they receive their orders.

We have two shifts a day, in the morning and in the afternoon. Each employee must sign in the

logbook given by the management.

EMPLOYEES SCHEDULES

] Mon. Tues. Wed. Thurs. Fri. Sat. Sun

Eron Cashier Leave Maker Maker Leave Maker Cashier


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Sai Maker Leave Maker Cashier Leave Cashier Cashier

Maan Maker Cashier Leave Maker Maker Leave Maker

Dayanara Cashier Maker Leave Maker Cashier Leave Maker

Julie Maker Maker Cashier Leave Maker Leave Cashier

Theresa Maker Cashier Maker Leave Cashier Leave Cashier

Mara Leave Maker Cashier Maker Leave Maker Maker

Paulo Leave Maker Maker Cashier Leave Cashier Maker

FINANCIAL PLAN

It is key to our financial success to grow Trufflelicious not just as a dessert stall, but as acompany. We prepare to have a capital in our own wallet of P200,000 money in the first year

with the hopes of eventually selling an established chain of dessert bars or establishing our

company as a gourmet franchise in the next four years. This means we must always bereinvesting in the future of Trufflelicious.

Important Assumptions

The financial plan depends on important assumptions, most of which are shown in thefollowing table. The key underlying assumptions are:

We assume a slow-growth economy, without major recession.

We assume of course that there are no unforeseen changes in technology to make

products immediately obsolete. We assume access to equity capital and financing sufficient to maintain our financial plan

as shown in the tables.


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Start-up SummaryOur start-up costs come to P200,000 which is mostly production cost, store furnishings

and construction, and starting inventory expenses associated with opening our first stall. Thestart-up costs are to be financed by our owned investment.

Start-up is for 1 month of operations.Start-up Requirements

Start-up Expenses

Legal Registration P11,000

Stall Supplies P500

Production Costs (Maximum) P80,000

Rent P8,000

Advertising 5,000

Utilities P5,000

Design & Construction of Stall P26,000

Transportation 2,000

Expensed Equipment 40,000

Other expense(include the Uniform of the crew) 7,200

Total Start-up Expenses P184,700

Start-up Assets

Cash Required P15,300

Total Assets P15,300

Total Requirements P200,000

Projected Profit And Loss

An important assumption when calculating our P&L is the increase in sales from year to

year. We are basing our assumptions on the financial success to the number of target customer

in one year. Our capital is more helpful. We computed the number may we sell in a day to day

basis. In first year, 2 months our capital was cut into two, one for the expenses and the other halfis for the productions. According to what we know, our business will increase 30% every 2

months and in our 1 year in business, our estimated profit will increase by 50%.


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Legends:Direct Cost of Sales or Production Costs

Gross Margin=Sales-Total Costs of SalesGross Margin%=Gross Margin/SalesPayroll-in first year, 8 Crew and it will

divide into two in second year, and every

next year, we Hire 4 more crew every stall.Utilities are Light and Water Expense

Equipments (Double boiler and

Refrigerator)Business Taxes is 5 % of total SalesOther Expenses include Uniform of Crew

Net Profit=Gross Margin-Total operating

ExpensesNet Profit %=Net Profit/Gross Margin

Profit and Loss

Year 1 Year 2 Year 3 Year 4 Year 5

Sales Php1,244,160 PhP2,488,320 PhP3,732,480 PhP4,976,640 PhP6,220,800

Direct Cost of Sales 80,000 200,000 320,000 440,000 560,000

Other Production Expense 20,000 30,000 40,000 60,000 80,000

Total Cost of Sales Php100,000 Php230,000 Php360,000 Php500,000 Php640,000

Gross Margin Php1,144,160 Php2,258,320 Php3,372,480 Php4,476,640 Php5,580,800

Gross Margin % 91.96% 90.76% 90.35% 89.95% 89.71%

Expenses

Payroll (8 Crew) 576,000 576,000 864,000 1,152,000 1,440,000

Stall Supplies 12,000 24,000 36,000 48,000 60,000

Utilities 60,000 120,000 180,000 240,000 300,000

Legal Registration and Licenses 11,000 11,000 11,000 11,000 11,000

Equipments 40,000 40,000 40,000 40,000 40,000

Payroll Taxes (3% of Total Payroll) 17,280 17,280 25,920 34,560 43,200

Design and Contruction of Stall 26,000 26,000 26,000 26,000 26,000

Insurance 120,000 120,000 120,000 120,000 120,000

Advertising 10,000 20,000 30,000 40,000 50,000

Transportation 12,000 24,000 36,000 48,000 60,000

Business Taxes Incurred 62,208 124,416 186,624 248,832 311,040

Other Expenses 7,200 - 3,600 3,600 3,600

Total Operating Expenses Php953,688 Php1,102,696 Php1,559,144 Php2,011,992 Php2,464,840

Net Profit Php190,472 Php1,155,624 Php1,813,336 Php2,464,648 Php3,115,960

Net Profit/Income % 16.65% 51.17% 53.77% 55.06% 55.83%


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Legends:

Cash Sales or Sales-are the money that stalls will receive.

Cash Spending-it only include the Payroll

Bill Payments-it includes the taxes, transportation, advertising, insurance, ect.

Long term Assets-include the Stall, Equipment, and supplies

Net Cash Flow=Cash Sales- Subtotal Cash Spent

Cash Balance=in first year, Cash balance in First month of Operation(15,300) plus the net Cash

flow. In Second Year, Cash Balance in first year plus the net Cash flow in Second year, and the

same process in the next 3 years.

Cash Flow


Cash Received by Operations

Cash Sales Php1,244,160 Php2,488,320 Php3,732,480 Php4,976,640 Php6,220,800

Expenditure from OperationsCash Spending 576,000 576,000 864,000 1,152,000 1,440,000

Bill Payments 299,688 436,696 593,144 745,992 898,840

Subtotal Spent on Operations Php875,688 Php1,012,696 Php1,457,144 Php1,897,992 Php2,338,840

Purchase of Long Term Assets Php78,000 Php90,000 Php102,000 Php114,000 Php126,000

Subtotal Cash Spent Php953,688 Php1,102,696 Php1,559,144 Php2,011,992 Php2,464,840

Net Cash Flow Php290,472 Php1,385,624 Php2,173,336 Php2,964,648 Php3,755,960

Cash Balance Php305,772 Php1,691,396 Php3,864,732 Php6,829,380 Php10,585,340


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Balance Sheet


Assets

Current Asset

Cash 305,772 1,691,396 3,864,732 6,829,380 10,585,340

Inventory - - - - -

Other Current Assets - - - - -

Long Term Assets 299,688 436,696 593,144 745,992 898,840

Total Assets Php605,460 Php2,128,092 Php4,457,876 Php7,575,372 Php11,484,180

Liabilities and Capital

Current Liabilities

Account Payable - - - - -

Borrowing - - - - -

Total Liabilities - - - - -

Capital

Piad In Capital 200,000 486,000 716,000 917,000 1,190,600

Earnings 190,472 1,155,624 1,813,336 2,464,648 3,115,960

Total Capital Php390,472 Php1,641,624 Php2,529,336 Php3,381,648 Php4,306,560

Toatl Liabilities and Capital Php390,472 Php1,641,624 Php2,529,336 Php3,381,648 Php4,306,560

Documents

Business Plan (PUP Marketing Student)