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Table of Contents
CHAPTER 1: Project Summary ................................................................ 1 1.1. Brief description of the Project ............................................................................................ 1 1.2. Management Aspects.............................................................................................................. 1 1.3. Marketing Aspects ................................................................................................................... 1 1.4. Technical Aspects ................................................................................................................... 2 1.5. Financing Aspects (total capital amount only) ................................................................ 2
CHAPTER 2: Project Timetable and Status ........................................... 3 CHAPTER 3: Management Aspects ......................................................... 4
3.1. Management during the Pre-Operating Period ................................................................ 4 3.1.1. Registration of Business ................................................................................................ 4 3.1.2. Obtaining of Financing ................................................................................................... 4 3.1.3. Plant Site Acquisition ...................................................................................................... 5 3.1.4. Building Construction ..................................................................................................... 5 3.1.5. Machinery Supplier Selection ....................................................................................... 5 3.1.6. Order and Receipt of Machinery .................................................................................. 5 3.1.7. Machinery Installation ..................................................................................................... 6 3.1.8. Materials Supplier Selection ......................................................................................... 6 3.1.9. Advertising (For Open Positions) ................................................................................ 6 3.1.10. Hiring of employees .................................................................................................... 6 3.1.11. Advertising (For Products) ........................................................................................ 7 3.1.12. Trial Run ......................................................................................................................... 8
3.2. Management During the Operating Period ........................................................................ 9 3.2.1. Type of Business Organization and Reason for Choice ............................................ 9 3.2.2. Internal Organization ........................................................................................................... 9 3.2.3. Labor ..................................................................................................................................... 12
CHAPTER 4: Marketing Aspects ............................................................ 13 4.1. Demand ..................................................................................................................................... 13 4.2. Consumption for the past years. ....................................................................................... 14 4.3. Projected consumption for the next three years upon start up. ............................... 15
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4.4. Method of projection used and factors considered ...................................................... 15 4.5. Comparison of projection with competitor/demand ..................................................... 15 4.6. Prices......................................................................................................................................... 17 4.6.1. Cost of production ............................................................................................................. 17 4.7. Marketing program/Plan ....................................................................................................... 17
4.7.1. Marketing Objectives .................................................................................................... 17 4.7.2. Strategic Marketing Directions ................................................................................... 18 4.7.3. Marketing Programs ...................................................................................................... 19
4.8. Channels of Distribution ...................................................................................................... 27 4.9. Packaging................................................................................................................................. 28 4.10. Projected Sales Quantity for the Next Three Years .................................................. 28
CHAPTER 5: Technical Aspects ............................................................ 32 5.1. Product ..................................................................................................................................... 32 5.2. Product Specifications and Principal Uses..................................................................... 32 5.3. Product Quality and Quantity ............................................................................................. 33 5.4. Manufacturing Process ........................................................................................................ 34
5.4.1. Process Flow for Cupcake ........................................................................................... 34 5.4.2. Process Flow for Cheesecake .................................................................................... 36 5.4.3. Process Flow for Brownies ......................................................................................... 37
5.5. Processes used in existing plants .................................................................................... 38 5.6. Plant Size and Production Schedule ................................................................................ 38 5.7. Annual and Daily capacity at a given number of shifts and the number of operating days per month ............................................................................................................... 41 5.8. Machinery ................................................................................................................................. 42 5.9. Specifications and Functions ............................................................................................. 42 5.10. Selection of Supplier ......................................................................................................... 43 5.11. Quotations from Supplier ................................................................................................ 43 5.12. Delivery, Payments, and Other Arrangements with the Suppliers ....................... 45 5.13. Plant Location ..................................................................................................................... 47 5.14. Plant Location Map ............................................................................................................ 49 5.15. Desirability of the Location ............................................................................................. 49 5.16. Alternative Locations ........................................................................................................ 50 5.17. Plant Layout ......................................................................................................................... 50
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5.18. Structures ............................................................................................................................. 50 5.19. Raw Materials ...................................................................................................................... 51 5.20. Consumption of Raw Materials ...................................................................................... 52 5.21. Specifications ..................................................................................................................... 58 5.22. Proof of Reliability of Raw Materials ............................................................................. 60 5.23. Alternative Raw Materials ................................................................................................ 61 5.24. Availability of Supply ........................................................................................................ 61 5.25. Supplier ................................................................................................................................. 62 5.26. Material Cost Table ............................................................................................................ 63 5.27. Quotations ........................................................................................................................... 66 5.28. Utilities .................................................................................................................................. 67 5.29. Waste Disposal ................................................................................................................... 67
CHAPTER 6: Financing Aspects ............................................................ 69 6.1. Sources of Financing for the Project ................................................................................ 69
CHAPTER 7: Financial Statement .......................................................... 70 7.1. Statement of Financial Position First Year and Three Years Forecast ................ 70 7.2. Income Statement First Year and Three Years Forecast ......................................... 71 7.3. Statement of Cash Flow First Year and Three Years Forecast ............................... 72 7.4. Financial Ratios First Year and Three Years Forecast ............................................. 78 7.5. Financial Ratios Analysis Story ......................................................................................... 79
CHAPTER 8: Social Desirability of a Project ........................................ 81 8.1. Government Revenues ......................................................................................................... 81 8.2. Foreign Exchange Reserves ............................................................................................... 81 8.3. Related Industries .................................................................................................................. 81 8.4. Consumers ............................................................................................................................... 81 8.5. Employees ............................................................................................................................... 82
CHAPTER 9: Acknowledgement ............................................................ 83 CHAPTER 10: Appendices ................................................................... 84
10.1. Tooty Sweety Transactions Year 1 ................................................................................ 84 10.2. Computations For Year 1 ................................................................................................. 85
CHAPTER 11: Bibliography .................................................................. 90
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List of Figures
Figure 5-1 Process Flow for Cupcake (1st Half) ............................................................................ 34 Figure 5-2 Process Flow for Cupcake (2nd Half) ............................................................................. 35 Figure 5-3 Process Flow for Cheesecake (1st Half) ....................................................................... 36 Figure 5-4 Process Flow for Cheesecake (2nd Half) ...................................................................... 36 Figure 5-5 Process Flow for Brownies (1st Half) ............................................................................ 37 Figure 5-6 Process Flow for Brownies (2nd Half) ........................................................................... 37 Figure 5-7 Gantt chart for the whole Production of Tooty Sweety (8 hrs) .............................. 38 Figure 5-8 Gantt chart for the Production of Cupcake of Tooty Sweety ................................. 39 Figure 5-9 Gantt chart for the Production of Cheesecake of Toory Sweety .......................... 39 Figure 5-10 Gantt Chart for the Production of Brownies of Tooty Sweety ............................. 40
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List of Tables
Table 2-1 Gantt Chart of Project Activities ........................................................................................ 3 Table 4-1 Sales of Baked Goods by Category: Volume 2008-2013 ........................................... 14 Table 5-1 Tooty Sweety's Annual and Daily capacity at a given number of shifts and the number of operating days per month ............................................................................................... 41 Table 5-2 Product Specification for Cupcake ................................................................................. 59 Table 5-3 Product Specification for Cheesecake .......................................................................... 59 Table 5-4 Product Specification for Brownies ................................................................................ 60 Table 5-5 Material Cost Table for Cupcake ..................................................................................... 63 Table 5-6 Material Cost Table for Cheesecake ............................................................................... 64 Table 5-7 Material Cost Table for Brownies .................................................................................... 65
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List of Images Image 4-1 Tips, Ideas and Cool Stuff for Desserts to be Featured in our Website .............. 21 Image 4-2 New and Featured Products Section in our Website ................................................ 21 Image 4-3 List of Products for Online Order ................................................................................... 22 Image 4-4 Product Display ................................................................................................................... 23 Image 4-5 Product Display ................................................................................................................... 23 Image 4-6 Movie-Themed Cookies .................................................................................................... 24 Image 4-7 Television Show Inspired Cookies................................................................................. 24 Image 4-8 Novel-Themed Dessert ...................................................................................................... 25 Image 4-9 Holiday Cookies .................................................................................................................. 25 Image 4-10 Packaging for Individual Orders .................................................................................. 28 Image 4-11 Packaging for Group Orders ......................................................................................... 28 Image 5-1 Dough Roller ........................................................................................................................ 42 Image 5-2 Bread Slicer .......................................................................................................................... 42 Image 5-3 Cake Mixer ............................................................................................................................ 43 Image 5-4 Location of Tooty Sweety ................................................................................................. 48 Image 5-6 Location Map of Tooty Sweety ........................................................................................ 49 Image 5-7 Plant Layout of Tooty Sweety ......................................................................................... 50
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CHAPTER 1: Project Summary
1.1. Brief description of the Project
Tooty Sweety is a dessert shop located at East II Lakeside Evozone Nuvali,
Sta. Rosa, Laguna. We can be described as a quick-service restaurant where
customers sit around a bar and watch their desserts being made. The show, as
well as the dessert, is our main selling point.
Tooty Sweety sells gourmet desserts coupled with exceptional customer
service in a comforting atmosphere. Customers can dine-in and watch the chef
create their dessert. We also offer carry-out to prepare our desserts at home or
have a special cake for a celebration.
1.2. Management Aspects
The management aspect focuses on the formation of the business including
the type of business, the formation of the internal structure of the business, the
owners and the labor needed. In this paper, a gantt chart on the preparation of the
business will be presented. An organizational digaram will also be presented and
the individuals roles and functions will be discussed.
1.3. Marketing Aspects
The marketing aspects objective is to establish the annual quantity of the
product which is expected to be sold by the business in the future, the selling price
at which the product can be sold and the marketing program which have to be
adapted in order to sell the given quantity at the given price. The study made use
of the geometric forecasting method based on the demand of the products in the
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industry. The price was derived after subtracting the costs incurred and is
competitive to existing businesses in the industry. The promotion of the business
and the products will be included at the end of the study and the channels of
distribution will also be presented.
1.4. Technical Aspects
The technical aspects include the product and its specifications, the quality,
quantity and principal uses of the products, the plant size and location of the
business. It also show the plant layout design, the raw materials and equipment
needed in producing the products and the suppliers of the business. At the end of
this study, a detailed process flow of the business main products including
cupcake, cheesecake and brownies will be presented. A Gantt chart of the
production schedule of the business in an 8-hour basis and the production process
of each product is presented at the end of the study.
1.5. Financing Aspects (total capital amount only)
Tooty Sweety Corporation will have a total start-up capital of 3 500 000
through the contributions of the owners and through loaning from Metrobank.
The owners will give a capital of 500 000 each. And then the business will
obtain a loan of 2 000 000.
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CHAPTER 2: Project Timetable and Status
Table 2-1 Gantt Chart of Project Activities
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CHAPTER 3: Management Aspects
3.1. Management during the Pre-Operating Period
3.1.1. Registration of Business
It is important to register the business to avoid any legal problems once
the business operations start.
It will be an opportunity for the competitors to disrupt and delay
operations by notifying the proper authorities about the necessary
registrations of the business.
Steps:
Get certificate of registration for the business name through Security
and Exchange Commission (SEC)
Visit Barangay Hall, Local Government Unit, and Bureau of Internal
Revenue (BIR) for necessary permits/clearance
Register employees to SSS, DOLE, HDMF, and PhilHealth
3.1.2. Obtaining of Financing
In order for a small business to get off the ground, or to keep operating,
it must have financing.
Amortization Schedule for Tooty Sweety business loan.
Loan amortization simply means figuring out how much interest and
principal you have to pay on a loan each time the loan comes due, along
with how much the balance is reduced.
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3.1.3. Plant Site Acquisition
Selecting of the best location for the placement of Tooty Sweety
business facilities.
Commercial zoning
Right of way procurement (permits and agreements)
3.1.4. Building Construction
Building construction
Preparing for and forming buildings and building systems.
Planning for construction
Design/layout of desired concept of the building
Financing for the acquisition of construction materials and labor
Execution of building construction
3.1.5. Machinery Supplier Selection
Review and evaluate available machine supplier product catalogs
Obtain quotations and proposals from selected or preferred suppliers
3.1.6. Order and Receipt of Machinery
Upon receipt of quotations prepare formal purchase orders from the
suppliers
Request for machine test or trial for evaluation of machine
specifications
Receipt delivery of ordered machineries after suppliers order lead time
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3.1.7. Machinery Installation
Schedule machine installation and pre-testing
Inspect required electrical and mechanical requirements
Commercial installation and testing of the machine/equipment ordered
3.1.8. Materials Supplier Selection
Searching for available supplier that will satisfy the required raw
materials
Obtain quotations and proposals from selected or preferred suppliers
3.1.9. Advertising (For Open Positions)
Social network advertisements
Flyers
Posters
Tooty Sweety Website
3.1.10. Hiring of employees
Includes Human Resource planning to identify what the organization
requires in terms of the numbers of employees needed and their
attributes (knowledge, skills and abilities) in order to effectively meet
job requirements.
Identifying and setting of the proper salary per employee
Job interview of potential candidates for employee
Hiring the right people for the right job
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Job description will be recorded in order to assess performance of the
employee even after they have been hired.
Induction to help the new staff member settle quickly
Training and development programs
3.1.11. Advertising (For Products)
Online advertising
o Posting ads on websites that receive heavy traffic is one way to
get the word out about your business.
Newspaper Ads
o A daily and weekly newspaper ad allows targeting specific
geographic neighborhoods. Attaching an incentive, such as a
coupon, to the ad can help track the ad's effectiveness.
o Purchasing an ad in a section of the newspaper that is relevant to
the business
Radio Advertisement
o A catchy jingle
o Quick tag line
Television Advertisement
o High cost but will ensure reach to customers who would not
respond to radio
Public Speaking
o Offer services to organizations that could benefit from one of our
workshops or lectures
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o Bringing of promotional materials to the event to encourage
audience to spread the word about the product
Door Hangers and Flyers
o Canvassing the neighborhood
o Placing flyers in mailboxes
o Hanging ads on doorknobs
Event Sponsorship
o Acknowledgement in the event program
o On-site location for sample product
o Appearance of company logo on event posters
o Stamp that bears the company logo
Word of Mouth Advertising
o Hiring people to talk about the product of the company
o Hired marketers can go to coffee shop by pairs and talk audibly
about the product
3.1.12. Trial Run
Operates for a couple of days to learn what will be done in the shop and
see if the business produces positive feedbacks
o A test drive for both the employee and the owner of the business
o It will saved money in the long run because of fewer hiring mistakes
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3.2. Management During the Operating Period
3.2.1. Type of Business Organization and Reason for Choice
Tooty Sweety is a corporation as Corporations have many advantages
over partnerships and sole proprietorships.
Advantages of Corporation Vs Sole Proprietorship and Partnerships:
o Shareholders in a corporation are not liable for corporate debts
o Corporations offer self-employment tax savings
o Corporations have continuous life
o Corporations make raising money easier
3.2.2. Internal Organization
Board of Directors
President
Accounting Manager
Marketing Manager
Advertising Sales Supervisor
Sales Staff
Operations Manager
Head Baker
Assistant Baker
Supervisor
Cashier Delivery Person Waiter
H.R. Manager
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Board of Directors (3) (Angel Lizardo) (Jamaica Lafuente) (Kurt Lazarte)
governing the organization by establishing broad policies and objectives
selecting, appointing, supporting and reviewing the performance of the
President
ensuring the availability of adequate financial resources
approving annual/monthly budgets
accounting to the stockholders for the organizational performance
setting the salaries and compensation of corporation management
President (1) (Angel Lizardo) - reports to the Board of Directors regarding the
performance of the company. Leader, director, decision maker, manager, and
executor.
Accounting Manager (1) (Angel Lizardo) responsible for the
management sales, relationship with particular customers
Marketing Manager (2 ) (Kurt Lazarte) (Jamaica Lafuente) responsible
for influencing the level, timing, and composition of customer demand
and may act as the overall general manager of his/her assigned product
1. Advertising (1) (recruit) persuade, encourage, drive consumer
behavior with respect to a commercial offering
2. Sales Supervisor (1) (recruit) work directly to a sales team,
lead the team to make its quotas, motivating the team, and
correcting any problems that come up within it.
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Sales Staff (1) (recruit) assist the superior in carrying out
an assigned task, responsible in sales
Operations Manager (2) (Kurt Lazarte) (Angel Lizardo) ensuring that
the business operations are efficient in terms of using as few resources
as needed, and effective in terms of meeting the customers
requirements.
1. Head Baker (1) (Jamaica Lafuente) manages and coordinates
work done by other baker. Setting the right proportions for
ingredients, and overseeing work being done by the bakers.
Also, involved in most steps of food preparation (mixing
ingredients, etc.).
Assistant Baker (5) (relatives) assist and help the head
baker in preparation and production of products by
customers specifications and instructions in the time
frame.
2. Supervisor ( Kurt Lazarte) supervise the performance of the
personnel of the shop while operating
Cashier (2) (recruit) keeping the record of money the
shop had prior and after operation
Delivery Person (2) (former drivers) helps in delivering
products to customers location
Waiter (2) (recruit) take orders and serve foods and
beverages to customers at tables
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Human Resource Manager (2) (Kurt Lazarte) (Jamaica Lafuente)
overseeing department functions and managing employees
3.2.3. Labor
COMPENSATION:
There will be a 2% increase in salary annually. The following are included in this
salary increase:
Christmas Bonus
Overtime and Night Differential Pay
SSS Premiums
Retirement Fund
Medical Insurance
Salary: Daily Monthly Yearly
Advertising 1 12,000.00 144,000.00 Sales Supervisor 1 15,000.00 180,000.00
Sales Staff 1 12,000.00 144,000.00 Assistant Baker 5 75,000.00 900,000.00
Cashier 2 681.00 17,706.00 212,472.00 Waiter 2 681.00 17,706.00 212,472.00
Delivery Person 2 681.00 17,706.00 212,472.00 Owner 3 60,000.00 720,000.00
17 2,725,416.00
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CHAPTER 4: Marketing Aspects
4.1. Demand
Filipinos love to eat and food is the basis of their social life. At the same time,
Filipinos are known to love eating sweet food and because of this, Filipinos started
doing their own desserts depending on how they want it to be. According to AIB
International (2013), 70% of consumers eat dessert at least once a week, with 36%
twice or more; mid-evening snack (54%), afternoon (42%), late at night (40%), and
mid-morning (33%).
Moreover, the stronger performance of the Philippine economy helped to fuel the
consumption of baked goods in 2013. As stated in Euromonitor International (2014),
it is expected that retail current value sales will jump by 6%, as Filipinos are starting
to consume bread, pastries and cakes more frequently. This is especially noted
amongst busy middle-income urban consumers, who prefer to have sandwiches
instead of rice and other dishes in order to save time on food preparation.
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4.2. Consumption for the past years.
Table 4-1 Sales of Baked Goods by Category: Volume 2008-2013
'000 tonnes 2008 2009 2010 2011 2012 2013 Bread 130.99 130.58 132 135.61 139.49 144.14 - Bread Substitutes - - - - - - -Packaged/Industrial Bread 51.84 52.62 53.57 56.78 60.25 64.46 - Unpackaged/Artisanal Bread 79.15 77.96 78.43 78.82 79.24 79.68 Cakes 30.18 30.09 30.36 30.63 30.9 31.21 - Packaged/Industrial Cakes 13.99 14.06 14.18 14.32 14.48 14.65 - Unpackaged/Artisanal Cakes 16.18 16.02 16.18 16.31 16.43 16.56 Pastries 43.65 43.62 44.2 44.92 45.69 46.53 - Packaged/Industrial Pastries 28.26 28.54 28.97 29.55 30.2 30.93 - Unpackaged/Artisanal Pastries 15.39 15.08 15.23 15.37 15.49 15.6
Baked Goods 204.82 204.29 206.56 211.15 216.08 221.87
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store
checks, trade interviews, trade sources
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4.3. Projected consumption for the next three years upon start up.
Current Consumption Projected Annual Quantity for 2017-2019
(pieces per year) Product 2016 2017 2018 2019 Cupcake 123,552 135,907 176,679 265,019 Cheesecake 38,376 42,214 54,878 82,317 Brownies 131,664 144,830 188,280 282,419 Total 293,592 322,951 419,837 629,755
4.4. Method of projection used and factors considered
By knowing the capacity of the business, the annual sales can be projected. With the
ratio of the business annual sales with the industry sales, the target market percentage
was determined. However, the sales of the business was obtained by setting a
percentage of increase per year. The owners set a 10% increase, 30% increase and 50%
increase on the sales of the business for the years 2017-2019 respectively. Through the
use of the total annual sales, the market percentage was determined by comparing it to
the industry sales.
4.5. Comparison of projection with competitor/demand
Although Tooty Sweety is offering something new in the baked goods industry, we do
share similarities, and therefore compete with several kinds of quick-service dessert
businesses:
1. Bakeshop and Restaurants: any restaurant offering dessert such as Contis
Bakeshop & Restaurant (Nuvali).
2. Ice Cream Shops: Dairy Queen (Laguna Central).
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3. Donut and Coffee Shops: any place coffee and pastries are available for carry-
out or dine-in consumption including Starbucks (Paseo), Figaro (Laguna
Central), Krispy Kreme (Nuvali) and Auntie Annes (Philippines).
4. Supermarket: in-store bakeries as well as frozen specialty desserts offer some
competition like The French Baker (South Supermarket).
5. Bakeries: free-standing traditional bakeries such as Wild Flour Caf + Bakery
(Philippines), BreadTalk (Nuvali), Goldilocks Bakeshop (Paseo) and Red
Ribbon (Paseo).
Although Tooty Sweety is opening up a new niche in the baked goods industry,
there is no doubt that we are competing with a variety of similar businesses. We need
to compete against the ideas that dessert is something that only follows a special
dinner and needn't be any better than a frozen cake. We want every day to be a
reason to celebrate. And being able to watch your gourmet dessert be prepared by a
chef is a treat that appeals to everyone.
While price may be a factor when competing against Ice Cream and Coffee
Shops, these same consumers who are willing to pay a high price for a latte or a scoop
of ice cream 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 plays an important role in consumer decisions about
sweets. Both the atmosphere and staff of Tooty Sweety are warm & friendly. And the
menu will reflect "comfort food" desserts as opposed to intimidating desserts that
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resemble architectural colossi. We will use the highest quality products; sometimes
paring the ordinary with the exotic, but we will always present our desserts in a unique
and comforting manner.
4.6. Prices
4.6.1. Cost of production
Cost of Cupcake per Piece 15.8809937 Price of Cupcake per Piece 50.00
Material Ratio 31.76%
Cost of Cheesecake per Piece
37.8341635
Price of Cupcake per Piece 70.00
Material Ratio 54.05%
Cost of Brownies per Piece
15.8327462
Price of Cupcake per Piece
50.00
Material Ratio 31.67%
4.7. Marketing program/Plan
4.7.1. Marketing Objectives
The perishable products that will be offered should satisfy the customers
expectations from a newly established dessert shop.
The perishable products that will be offered should be sold at least 80% of the
total capacity of production in the first year of the business.
At the first year to fourth year of the business, the sold perishable product
should increase up to 95% of total production in order to minimize cost.
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The company will participate on parties or occasions in nearby locations such
as anniversary parties, birthdays, christenings, weddings, etc. in the third year
of the business. This will build up the credibility of our business.
Expansion of building and further improvement of our personnel in the 5th to
10th year of the business in order to have a quick and effective work and
respond to customers requirements inside the shop
Introduce new excellent quality product every month
Allocate at least three to five percent capital expenditure on marketing efforts
to further enhance market development
4.7.2. Strategic Marketing Directions
We need to set up a website for Tooty Sweety Corporation and that will be
www.tootysweety.com.ph. In this website, we can feature our products
themes per week, online catalogs which will feature our new products and
recipes, and nutritional facts, our corporate vision and mission, our promos
every occasion, our present customers and suppliers, our awards through the
years, and our Corporate Social Responsibility activities as well as
Environmental Objectives and Targets. This website will enable consumers to
order our products through delivery and as a channel to give gifts to their loved
ones. In doing this, we can set the appeal to all website surfers on the
companys amiability and accomplishments.
We will join the exhibits at different conventions and bazaars. We will also be
putting stalls in the different schools activities to further expose our products.
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http://www.tootysweety.com.ph/
4.7.3. Marketing Programs
4.7.3.1. Action Plans
2016
Month/Year Plan Cost December 2015 Set up a website for Tooty Sweety 329,025.00
1st Week of February 2016 Launch of website
1st Week of February 2016 1st Promo of our Products (Opening Sale) 5,000.00
Posters and Fliers will be printed whenever there are new products Posters and Fliers 200,000.00
Once Every Four Months Taste Test in Different Locations
5,000.00 Total: 15, 000.00
Annually
Total Cost 534,025.00
Sales 14,258,880.00
Start-up Capital 10,000,000.00
Total Funds 24,258,880.00
Ratio 2.20%
2017 and 2018
Month/Year Plan Cost
Whole year Maintenance of website 100,000.00
2nd Week of February 1st Promo of our
Products (Opening Sale)
5,000.00
Posters and Fliers will be printed whenever there are new products Posters and Fliers 80,000.00
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During Anniversaries (February starting 2017) Promos 20,000.00
Once Every Four Months Taste Test in Different Locations 5,000.00 Total:
15000 Annually
Total Cost 220,000.00
2017 2018
Sales 14,544,057.60 14,980,379.33 Capital 4,500,000.00 3,000,000.00 Total 19,044,057.60 17,980,379.33 Ratio 1.16% 1.22%
2019
Month/Year Plan Cost
Whole year Maintenance of website 100,000.00
2nd Week of February 1st Promo of our
Products (Opening Sale)
5,000.00
Will depend on the schedule of event & number of consumers (On the third year of business - 2019)
Put up stalls for different events
(Bazaars, Hotels and School Activities)
5,000.00
Posters and Fliers will be printed whenever there are new products Posters and Fliers 80,000.00
During Anniversaries (February starting 2017) Promos 20,000.00
Once Every Four Months Taste Test in Different Locations 5,000.00 Total:
15000 Annually
Total Cost 225,000.00
Sales 20,093,185.66 Capital 600,000.00 Total 20,693,185.66 Ratio 1.09%
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4.7.3.2. Website Set-up
The IT department of Tooty Sweety Corporation will be the one to design the
website and register it.
Image 4-1 Tips, Ideas and Cool Stuff for Desserts to be Featured in our Website
Image 4-2 New and Featured Products Section in our Website
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Image 4-3 List of Products for Online Order
4.7.3.3. Product Showroom
In our shop, we will allot a space for the display of desserts especially
for the new products. Also, by participating in different bazaars in schools
and in different malls, our products will be exposed to different markets and we
will be able to know their response. If the response is slow and we cannot get
the desired increase in orders, then an adjustment in the marketing plan should
be done.
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Image 4-4 Product Display
Image 4-5 Product Display
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4.7.3.4. Dessert by Themes
Movies
Television
Image 4-6 Movie-Themed Cookies
Image 4-7 Television Show Inspired Cookies
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Books
Holidays and Events
Image 4-8 Novel-Themed Dessert
Image 4-9 Holiday Cookies
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4.7.3.5. 4Ps
Product
The company will be producing high quality products. The company will
make sure that the consumers will be satisfied with the products that we will
be producing. New and innovative products will be introduced to the market
every month as part of the development of the company. The business will
also produce products that are not harmful to the consumers but rather will
improve their health. In order to do so the supplies used will be properly stored
and the fruits and other dairy products will be fresh. The products will be
packaged in a paper box as part of our contribution to the environment.
Price The price of our products will be competitive to the prices of our
competitors. From time to time, the company will be having different promos
in order to increase sales and promote the business.
Place Tooty Sweety will be located at the Lakeside Evozone, Nuvali, Sta. Rosa,
Laguna. The business will also market its products using different online and
offline approaches which include:
Online: website, e-mail marketing campaign, web video ad, online
catalogs, etc.
Offline: brochures, menus, posters and flyers, business cards.
Tooty Sweety Corporation Page 26
Promotion
Our current promotional plans include but are not limited to:
Create online and offline press releases to introduce our business
Facebook, Twitter, Instagram, Official Website
Ads on Google, and different sites
Coupon offers and promos, both online and offline
Premiums, giveaways, incentives
Magazine and newspaper ads
Stalls to different events in schools, bazaars and malls
Taste test in different locations
4.8. Channels of Distribution
Products will be delivered via land transportation.
o Orders
4.9. Packaging
Individual orders will be delivered in fancy boxes while group orders will be delivered
in rectangular boxes.
Image 4-11 Packaging for Group Orders
4.10. Projected Sales Quantity for the Next Three Years
Product Price per Piece Quantity (pieces)
Annual Sales Daily Monthly Yearly
Cupcake 50.00 396 10,296 123,552 6,177,600.00
Cheesecake 70.00 123 3,198 38,376 2,686,320.00
Brownies 50.00 422 10,972 131,664 6,583,200.00
Total 15,447,120.00
Image 4-10 Packaging for Individual Orders
Tooty Sweety Corporation Page 28
Sales of Baked Goods in the Philippines 37,063,700,000.00
Target Market 0.04%
Current Sales Projected Sales
2016 2017 2018 2019
15,447,120.00 16,991,832.00 22,089,381.60 33,134,072.40
The annual sales of Tooty Sweety are based on its own capacity based on the
three main products. In 2016, Tooty Sweety has 0.04% market share. For the next
three years, the target increase in sales of the company is 10%, 30% and 50% for
2017-2019 respectively.
Tooty Sweety Corporation Page 29
2017
Product Quantity (pieces)
Annual Sales Daily Monthly Yearly
Cupcake 471 11325.6 135907.2 6,795,360.00
Cheesecake 146 3517.8 42213.6 2,954,952.00
Brownies 502.8833 12069.2 144830.4 7,241,520.00
Total Annual Sales 16,991,832.00
Sales of Baked Goods in the Philippines 37,938,800,000.00
Market Percentage 0.04%
If the total sales for 2017 is 16,991,832.00, the above data should show how many quantity per product should be sold.
2018
Product Quantity (pieces)
Annual Sales Daily Monthly Yearly
Cupcake 613 14723.28 176679.36 8,833,968.00
Cheesecake 190 4573.14 54877.68 3,841,437.60
Brownies 653.7483 15689.96 188279.52 9,413,976.00
Total Annual Sales 22,089,381.60
Sales of Baked Goods in the Philippines 38,905,500,000.00
Market Percentage 0.06%
If the total sales for 2018 is 22,089,381.60, the above data should show how many quantity per product should be sold.
Tooty Sweety Corporation Page 30
2019
Product Quantity (pieces)
Annual Sales Daily Monthly Yearly
Cupcake 920 22084.92 265019.04 13,250,952.00
Cheesecake 285 6859.71 82316.52 5,762,156.40
Brownies 980.6225 23534.94 282419.28 14,120,964.00
Total Annual Sales 33,134,072.40
Sales of Baked Goods in the Philippines 39,782,676,151.01
Market Percentage 0.08%
If the total sales for 2019 is 33,134,072.40, the above data should show how many quantity per product should be sold.
Tooty Sweety Corporation Page 31
CHAPTER 5: Technical Aspects
5.1. Product
The business will serve pies, cakes, cheesecakes, bars and stacks, brownies,
cupcakes, pudding, custard, smoothies and frozen desserts. Some of the companys
best-selling products are Smores Tart, Berries and Cream, Death by Chocolate,
Heavenly Hazelnut, Berry Delight Strawberry Cheesecake.
5.2. Product Specifications and Principal Uses
A dessert is a typically a sweet course that concludes a meal. It is usually a sweet
course or dish, as of fruit, ice cream, or pastry, served at the end of a meal. The word
dessert originated from the French word desservir "to clean the table" and the negative
of the Latin word servire. Desserts usually include cakes, cookies, biscuits, gelatins,
pastries, ice creams, pies, puddings, and candies. Fruit is also commonly found in
dessert courses because of its natural sweetness. Even though desserts are known
for its sweet taste, there are several benefits one can get in eating desserts like having
better mood, greater nutrient intake and nourishing essential energy. Desserts can
positively influence a persons mood. In fact according to Aveen Bannon, a consultant
dietician and founder of The Dublin Nutrition Care, carbohydrate-rich foods cause your
brain to produce serotonin and tryptophan -- chemicals that promote emotional well-
being. Desserts also provide greater nutrient intake. Even though desserts are known
for its sweet taste, thus having negative effects in health, many establishment now
create pastry products using vegetables and fruits that provide antioxidants and
Tooty Sweety Corporation Page 32
promotes strong immune function. There are also smoothies or parfaits made with
low-fat milk or yoghurt that provide protein and calcium. Also, according to traditional
Chinese medicine, sweet food can actually nourish Qi (essential energy), enrich
blood, relieve tiredness, resolve toxin, and regenerate body fluid.
5.3. Product Quality and Quantity
The company will make sure that the equipment used will be properly maintained
and that the raw materials needed to make our products will be fresh and properly
stored. In terms of price and its taste, the company will make sure that it is competitive
enough and that the products will satisfy what the consumers really want.
Tooty Sweety Corporation Page 33
5.4. Manufacturing Process
5.4.1. Process Flow for Cupcake
Start
Prepare the necessary materials.
Whisk flour, baking soda and brown sugar in electric mixer.
Add eggs and vanilla extract.
A
A
Is it properly mixed?
Mix in flour mixture until properly mixed
Freeze for a few minutes
Yes
No
Add chocolate chips
Mix
Is it evenly mixed?
No
Put dough in baking pans then set aside.
Yes
B
Figure 5-1 Process Flow for Cupcake (1st Half)
Tooty Sweety Corporation Page 34
Figure 5-2 Process Flow for Cupcake (2nd Half)
B
Mix eggs, cake mix and canola oil
Place mixture in cupcake liners
Add the dough
Preheat oven to 350 degrees F
Bake in preheated oven for 20 minutes
Set aside then cool
Bake for a few minutes
Serve Chocolate Chip Cookie Dough
Cupcake
Is it properly cooked?
No
Yes
Tooty Sweety Corporation Page 35
5.4.2. Process Flow for Cheesecake
Figure 5-3 Process Flow for Cheesecake (1st Half)
Figure 5-4 Process Flow for Cheesecake (2nd Half)
Start
Combine cookie crumbs, melted butter, brown sugar
and cinnamon
Mix
Bake at 350 degrees F for 5 minutes
A
Set aside
Is it properly mixed?
Mix cream cheese, sugar, whipping cream, flour and
vanilla
Add egg Yes
Add mixture to the pan
Bake at 350 deg F for 45 minutes
Is it properly cooked?
Yes
B
A
Remove cake from oven
Bake for a few minutes
No
B
Combine sour cream, sugar and vanilla to cheesecake
Bake for 7 minutes
Leave in oven for 30 minutes
Combine whipping cream, chocolate chips in saucepan
Remove cake from oven
Stir until chocolate melts then add vanilla
Pour mixture over cheesecake
Refrigerate for at least 8 hours
Serve Chocolate Cookie Cheesecake
Tooty Sweety Corporation Page 36
5.4.3. Process Flow for Brownies
Figure 5-5 Process Flow for Brownies (1st Half)
Figure 5-6 Process Flow for Brownies (2nd Half)
Start
Prepare necessary ingredients
Preheat oven to 350 degrees F
Melt butter in a saucepan
A
Remove from heat
A
Add sugar, eggs and vanilla
Put mixture in the pan
Mix
Is it evenly mixed?
No
Bake in preheated oven for 25 to 30 minutes
Yes
B
Add cocoa, flour, salt and baking powder
Set aside
Is it evenly mixed? Yes
Bake for a few more minutes
Combine softened butter, cocoa, honey, vanilla extract
Set aside until cool
Mix
Is it evenly mixed?
No
Put mixture
Yes
B
Add confectioners sugar
Serve Brownies
Tooty Sweety Corporation Page 37
5.5. Processes used in existing plants
The processes used by existing business in making pastries and delivering
desserts vary. Some use the old method wherein there will be a long fermentation in
making the breads and pastries while others dont. At the same time, they manipulate
their formula depending on the availability of raw materials because of the different
seasons. Krispy Kremes production and delivery method when it comes to making
their products may be different from others. They normally start making their products
early in the morning and starts their delivery once the products are finished and they
do the said process every day.
5.6. Plant Size and Production Schedule
The location of the business will be on the EvoZone Lakeside Nuvali, Sta. Rosa,
Laguna. The plant size is 20m by 20m and since the building will have two floors- the
first floor will be for the restaurant while the second floor will be divided into two parts:
an extension of the restaurant and the office of the employess and owners the total
size of the plant is 800 m2.
Figure 5-7 Gantt chart for the whole Production of Tooty Sweety (8 hrs)
Tooty Sweety Corporation Page 38
Figure 5-8 Gantt chart for the Production of Cupcake of Tooty Sweety
Figure 5-9 Gantt chart for the Production of Cheesecake of Toory Sweety
Tooty Sweety Corporation Page 39
Figure 5-10 Gantt Chart for the Production of Brownies of Tooty Sweety
The figure shown in Figure V-7 shows the Gantt chart for the whole production of
Tooty Sweety for eight hours. On the other hand, Figures V-8, V-9 and V-10 shows
the production process of making cupcakes, cheesecakes and brownies respectively.
Tooty Sweety Corporation Page 40
5.7. Annual and Daily capacity at a given number of shifts and the number of operating days per month
Table 5-1 Tooty Sweety's Annual and Daily capacity at a given number of shifts and the number of operating days per month
No of hours per day 8 No of minutes per hour 60 No of minutes per day 480 No of days per month 26 Breaktime 40 No of days per year 312
No of minutes per day 440 No of minutes per year 137280 No of minutes per month 11440 No of minutes per week 2640
Bakers Time(min) No of operators
No of minutes per day
Sweets produced per day
Sweets per
week
Sweets per month 2014 production
Cupcake 80 3 440 396 2,376
10,296
123,552
Cheesecake 100 2 440 123 738
3,198
38,376
Brownies 50 3 440 422 2,532
10,972
131,664 Total 293592
The table above shows Annual and Daily capacity at a given number of shifts and the number of operating days per
month of Tooty Sweety. The business will run 8 hours a day and 24 days per month.
Tooty Sweety Corporation Page 41
5.8. Machinery
The equipment used in the production of the products will be coming from the
companys main supplier, F. USABAL Enterprises. The equipment includes: 8-tray
Oven, Dough Roller, Bread Slicer, Working Table, Fermentation Rack and Mixing Box.
Purchasing additional units of the equipment will be considered by the business based
on its performance.
5.9. Specifications and Functions
Dough Roller All heavy duty materials Cast iron rollers and parts Effective and economical Chain-driven for smoother operation Pedal brake Sizes of rollers
1.5 HP Capacity, electric motor, 4" dia. x 16" roller
2.0 HP Capacity, electric motor, 4" dia. x 16" roller
2.0 HP Capacity, electric motor, 5" dia. x 20" roller
Bread Slicer Bearing-type for silent operation 31 blades, all individually mounted under
balanced tension Table type with stainless guide and heavy duty
steel casing 1/4 HP electric motor 1/2" & 3/4" Thick Capacity
Image 5-1 Dough Roller
Image 5-2 Bread Slicer
Tooty Sweety Corporation Page 42
The tables above show the equipments
specifications and functions from the main supplier F.
USABAL Enterprises.
5.10. Selection of Supplier
The equipment to be used in the production of the products will be coming from
the companys main supplier F. USABAL Enterprises which is located at #42/29 P.
Gomez St., San Isidro I, Concepcion, Marikina City. The said supplier make quality
and affordable bakery equipment including commercial and industrial ovens since
1975. The other materials to be used in the production will be coming from the
companys other supplier including MK Kitchen Equipments & Surplus Warehouse
located at Lot 1A-3 Pioneer St., Bgy. Highway Hills, Mandaluyong City, Philippines,
Bakeware Sta.Cruz, Laguna and Cupcake Equipment Factory at Karuhatan,
Valenzuela City.
5.11. Quotations from Supplier
The companys main supplier in equipment is F. USABAL ENTERPRISES. Their
complete baking packages costs Php 80,000 which includes 8-tray Oven, Dough
Roller, Bread Slicer, Working Table, Fermentation Rack and Mixing Box with 1 year
warranty on parts and services (except on electrical parts). Since the business is just
starting, the company will be purchasing two sets of the said package. Additional units
of equipment will be depending on the companys performance.
Cake Mixer Gear-driven Mixer 20 Quart & 12 Quart Capacity 3/4 HP Motor 220 Volts
Image 5-3 Cake Mixer
Tooty Sweety Corporation Page 43
The table below shows the materials and the prices of each materials from the
companys supplier Bakeware found in Sta. Cruz, Laguna.
Products Prices
Silicon Bake ware
Cake pan sets
Square cake tins
Round tins
Cupcakes Trays
Show Case
Baking tins cupcakes
Wooden spoon
Large mixing bowl
Weighing scales
Paper cases
Knife
P 500.00/pc
P 500.00/set
P 300.00/pc.
P300.00/pc.
P 300.00/pc
P 75.000/pc
P 120.00/pc.
P 50.00/pc.
P 150.00/pc
P 500.00/pc
P 30.00/case
P 220.00/set
The table below shows the materials and its price from the compans supplier
Cupcake Equipment Factory located at Karuhatan, Valenzuela City.
Products Prices
Measuring Cups
Measuring Spoons
Liquid Measuring Cup
Electric Mixer
Hand Mixer
Spatula
Sheet Pans or Cupcake
Pans
Oven Thermometer
Cooling Rack
P 50 /pc.
P 50 /set
P 70 /pc.
P 1,500 /pc.
P 200/pc.
P 80/pc.
P 200/pc.
P 40,000/pc.
P 3,000/pc.
P 100/pc.
P 30/dozen.
Tooty Sweety Corporation Page 44
Piping Bag and Large
Tips
Cupcake Papers/liners
Cloth or paper towels
Deck oven
Storm convection oven
Oven rack
Spiral mixer
P 50/pc
P 30,000
P 50,000
P 25,000
P 45,000
P 20,000
5.12. Delivery, Payments, and Other Arrangements with the Suppliers
The delivery, payments, and other arrangements with the suppliers will incude but
not limited to: E-mail order form, call or text, and cash and check payments. Tooty
Sweety will also coordinate on the suppliers regarding the process of acquiring the
goods/equipment. The delivery fees vary depending on the exact location which the
company will also consider with the supplier. At the same time, the companys main
supplier of equipment have 1-year warranty on parts and services except on electrical
parts. This should be recorded so that if there were problems in the machinery, the
supplier will be the one to arrange everything and take care of it. Lastly, the company
will have free baking seminar for buyers.
Category Object Supplier Qty Selling Price TOTAL COST Unit
Furniture
Long Sofa
JECAMS Enterprises
6 22,500.00 135,000.00 piece 2-Seat Sofa 28 17,250.00 483,000.00 piece Single Chair 20 3,800.00 76,000.00 piece Office Sofa 1 57,000.00 57,000.00 piece
1 53,000.00 53,000.00 piece Office desk 6 13,432.00 80,592.00 piece
1 35,800.00 35,800.00 piece Conference Table 1 10,864.00 10,864.00 piece
Office Chair 6 4,290.00 25,740.00 piece Cabinet 3 12,550.00 37,650.00 piece Counter 2 40,957.00 81,914.00 piece
Tooty Sweety Corporation Page 45
Total 1,076,560.00 Category Object Supplier Qty Selling Price Total Cost Unit
Equipment, Appliances and Vehicle
Complete Baking Package:
F. Usabal Enterprises
3 80,000.00 240,000.00 package
8-tray Oven
Dough Roller
Bread Slicer
Working Table
Fermentation Rack
Mixing Box
Cake Pan
Bakeware
25 500.00 12,500.00 set
Silicon Bakeware 3 500.00 1,500.00 set
Cupcakes Trays 25 300.00 7,500.00 piece
Large mixing bowl 6 150.00 900.00 piece
Weighing Scale 4 500.00 2,000.00 piece
Knife 3 220.00 660.00 set
Measuring Cups 6 50.00 300.00 piece
Measuring Spoons 6 50.00 300.00 set
Liquid Measuring Cup 6 70.00 420.00 piece
Hand Mixer 4 200.00 800.00 piece
Spatula 6 80.00 480.00 piece
Sheet Pans or Cupcake Pans
25 200.00 5,000.00 piece
Oven Thermometer 2 40,000.00 80,000.00 piece
Cooling Rack 2 3,000.00 6,000.00 piece
Piping Bag and Large Tips
4 100.00 400.00 piece
Cupcake Papers/liners 80 30.00 2,400.00 dozen
Cloth or paper towels 4 50.00 200.00 piece
Tooty Sweety Corporation Page 46
Rolling Pin
Gourdo's
6 380.00 2,280.00 piece
Fountainware Soda Glass
50 145.00 7,250.00
Libbey Valley Forge Lexington Beverage
9 300.00 2,700.00 6/set
Gourdo's Dessert Service Colonial
3 1,125.00 3,375.00 25
pieces
Bar Spoon Stiletto 9 360.00 3,240.00 6 pieces
AC unit Henrich Trading Center
6 40,000.00 240,000.00 piece
Refrigerator LG
Electronics 2 123,087.00 246,174.00
Utensils Lazada.com 6 340.00 2,040.00 12
pieces per set
Plates 15 455.00 6,825.00 4 pieces per set
Cake Stand Bakecraft 4 2,300.00 9,200.00 set
Cash Register Olympia 3 23,500.00 70,500.00 piece
Printer Canon 6 4,995.00 29,970.00
Computer Acer 6 23,990.00 143,940.00
Van Hyundai 2 838,000.00 1,676,000.00
Total 2,564,854.00
5.13. Plant Location
The company will be acquiring the premier plus commercial Lot at East II
Lakeside Evozone, Nuvali, Sta. Rosa, Laguna. It is situated right of Lakeside
Evozone East, with additional 47 commercial lots to the remaining inventory in the
Lakeside Evozone. Similar to the East and South Districts, East II will also be mixed-
use development, dedicating areas for open space, park systems, and road
Tooty Sweety Corporation Page 47
networks.
Image 5-4 Location of Tooty Sweety
Tooty Sweety Corporation Page 48
5.14. Plant Location Map
As mentioned above, the company will be acquiring the premier plus commercial
Lot at East II Lakeside Evozone, Nuvali, Sta. Rosa, Laguna.
5.15. Desirability of the Location
The company will acquire the premiere plus commercial lot at East II Lakeside
Evozone, Nuvali, Sta Rosa, Laguna which is a corner lot. Corner lots provide great
vantage points, excellent frontage and better access as it is bounded by a 25-meter
wide road on one side, and a 15-meter wide road on the other.
Image 5-5 Location Map of Tooty Sweety
Tooty Sweety Corporation Page 49
5.16. Alternative Locations
If in case the desired location for Tooty Sweety is not possible, the management
plans to have the business built in Paseo de Sta. Rosa, Laguna and Solenad I or II
which is near the desired location.
5.17. Plant Layout
Image 5-6 Plant Layout of Tooty Sweety
5.18. Structures
Tooty Sweety will be a two-story building and is rent to own. The company will hire
an interior designer or architect for a new and better construction of the shop. The
buildings maximum floor area ratio (FAR) is 4 for the typical commercial lots. There
will also be setbacks and building footprints which includes: 4 meters minimum for the
building face fronting a street, 3 meters minimum for the building face fronting adjacent
parcels and maximum building footprint allowed is 75% of the total area. The
maximum height of the building shall be determined based on the floor area ratio and
Tooty Sweety Corporation Page 50
other restrictions that may govern such as ATO, local government ordinances, etc.
The building shall have a contemporary and progressive look consistent with
NUVALIs vision. The use of innovative construction and finishing material that is, not
only, cost efficient and aesthetically pleasing but also environmentally responsible is
highly encouraged.
5.19. Raw Materials
The raw materials the company will be using in the production of its products are
shown in the table below:
Fruits
Dairy Products
Fresh Juices and Jams
Ice Cream
Breads
Bread Bases
Bread Concentrates
Bread Improvers & Conditioners
Bread Mixes
Bread Preservatives
Leavening Agents
Specialty Bread Bases
Cakes
Cake Mixes and Concentrates
Cake Preservative
Egg Substitute
Emulsifiers & Stabilizers
Leavening Agents
Chocolates
Fats and Oils
Emulsified Fats
Fats
Releasing Agents
Fillings and Toppings
Fruit Fillings
Specialty Fillings
Specialty Toppings
Finishing
Glazes
Icings and Toppings
Piping Jelly
Flavors and Colors
Miscellaneous
Tooty Sweety Corporation Page 51
5.20. Consumption of Raw Materials
2016
Annual Orders 123552 Cupcakes
Flour 988416 grams 988.416 kgs
Baking Soda 5148 grams 5.148 kgs
Salt 7722 grams 7.722 kgs
Butter 581724 grams 581.724 kgs
Sugar 257400 grams 257.4 kgs
Sugar 514800 grams 514.8 kgs
Egg 20592 grams 20.592 kgs
Vanilla Extract 1235520 pcs 1235520 pcs
Chocolate Chips 782496 grams 782.496 kgs
Yellow Cake Mix 2662571.34 grams 2662.571 kgs
Canola Oil 406692 mL 406.692 L
Annual Orders 38376 Cheesecakes
Cookie Crumbs 1228032 grams 1228.032 kgs
Butter 78122.57143 grams 78.12257 kgs
Sugar 150762.8571 grams 150.7629 kgs
Cinnamon 182925.6 grams 182.9256 kgs
Cream Cheese 2483.475429 grams 2.483475 kgs
Sugar 825084 grams 825.084 kgs
Whipping Cream 216550.2857 mL 216.5503 L
Flour 43858.28571 grams 43.85829 kgs
Vanilla Extract 41117.14286 mL 41.11714 L
Eggs 10964.57143 pcs 10964.57 pcs
Sour Cream 1242943.817 grams 1242.944 kgs
Tooty Sweety Corporation Page 52
Chocolate Chips 624980.5714 grams 624.9806 kgs
Annual Orders 131664 Brownies
Butter 929877 grams 929.877 kgs
Sugar 1654029 grams 1654.029 kgs
Eggs 16458 pcs 16458 pcs
Vanilla Extract 82290 mL 82.29 L
Cocoa Powder 351104 grams 351.104 kgs
Flour 526656 grams 526.656 kgs
Salt 12343.5 grams 12.3435 kgs
Baking Powder 8229 grams 8.229 kgs
Honey 1974960 mL 1974.96 L
Sugar 1053312 grams 1053.312 kgs
2017
Annual Orders 135907 Cupcakes
Flour 1087256 grams 1087.256 kgs
Baking Soda 5662.792 grams 5.662792 kgs
Salt 8494.188 grams 8.494188 kgs
Butter 639895.5 grams 639.8955 kgs
Sugar 283139.6 grams 283.1396 kgs
Sugar 566279.2 grams 566.2792 kgs
Egg 22651.17 grams 22.65117 kgs
Vanilla Extract 1359070 pcs 1359070 pcs
Chocolate Chips 860744.3 grams 860.7443 kgs
Yellow Cake Mix 2928824 grams 2928.824 kgs
Canola Oil 447360.5 mL 447.3605 L
Tooty Sweety Corporation Page 53
Annual Orders 42214 Cheesecakes
Cookie Crumbs 1350848 grams 1350.848 kgs
Butter 85935.64 grams 85.93564 kgs
Sugar 165840.7 grams 165.8407 kgs
Cinnamon 201220.1 grams 201.2201 kgs
Cream Cheese 2731.849 grams 2.731849 kgs
Sugar 907601 grams 907.601 kgs
Whipping Cream 238207.6 mL 238.2076 L
Flour 48244.57 grams 48.24457 kgs
Vanilla Extract 45229.29 mL 45.22929 L
Eggs 12061.14 pcs 12061.14 pcs
Sour Cream 1367251 grams 1367.251 kgs
Chocolate Chips 687485.1 grams 687.4851 kgs
Annual Orders 144830 Brownies
Butter 1022862 grams 1022.862 kgs
Sugar 1819427 grams 1819.427 kgs
Eggs 18103.75 pcs 18103.75 pcs
Vanilla Extract 90518.75 mL 90.51875 L
Cocoa Powder 386213.3 grams 386.2133 kgs
Flour 579320 grams 579.32 kgs
Salt 13577.81 grams 13.57781 kgs
Baking Powder 9051.875 grams 9.051875 kgs
Honey 2172450 mL 2172.45 L
Sugar 1158640 grams 1158.64 kgs
Tooty Sweety Corporation Page 54
2018
Annual Orders 176679 Cupcakes
Flour 1413432 grams 1413.432 kgs
Baking Soda 7361.625 grams 7.361625 kgs
Salt 11042.44 grams 11.04244 kgs
Butter 831863.6 grams 831.8636 kgs
Sugar 368081.3 grams 368.0813 kgs
Sugar 736162.5 grams 736.1625 kgs
Egg 29446.5 grams 29.4465 kgs
Vanilla Extract 1766790 pcs 1766790 pcs
Chocolate Chips 1118967 grams 1118.967 kgs
Yellow Cake Mix 3807469 grams 3807.469 kgs
Canola Oil 581568.4 mL 581.5684 L
Annual Orders 54878 Cheesecakes
Cookie Crumbs 1756096 grams 1756.096 kgs
Butter 111715.9 grams 111.7159 kgs
Sugar 215592.1 grams 215.5921 kgs
Cinnamon 261585.1 grams 261.5851 kgs
Cream Cheese 3551.391 grams 3.551391 kgs
Sugar 1179877 grams 1179.877 kgs
Whipping Cream 309668.7 mL 309.6687 L
Flour 62717.71 grams 62.71771 kgs
Vanilla Extract 58797.86 mL 58.79786 L
Eggs 15679.43 pcs 15679.43 pcs
Sour Cream 1777420 grams 1777.42 kgs
Chocolate Chips 893727.4 grams 893.7274 kgs
Tooty Sweety Corporation Page 55
Annual Orders 188280 Brownies
Butter 1329728 grams 1329.728 kgs
Sugar 2365268 grams 2365.268 kgs
Eggs 23535 pcs 23535 pcs
Vanilla Extract 117675 mL 117.675 L
Cocoa Powder 502080 grams 502.08 kgs
Flour 753120 grams 753.12 kgs
Salt 17651.25 grams 17.65125 kgs
Baking Powder 11767.5 grams 11.7675 kgs
Honey 2824200 mL 2824.2 L
Sugar 1506240 grams 1506.24 kgs
2019
Annual Orders 265019 Cupcakes
Flour 2120152 grams 2120.152 kgs
Baking Soda 11042.46 grams 11.04246 kgs
Salt 16563.69 grams 16.56369 kgs
Butter 1247798 grams 1247.798 kgs
Sugar 552122.9 grams 552.1229 kgs
Sugar 1104246 grams 1104.246 kgs
Egg 44169.83 grams 44.16983 kgs
Vanilla Extract 2650190 pcs 2650190 pcs
Chocolate Chips 1678454 grams 1678.454 kgs
Yellow Cake Mix 5711215 grams 5711.215 kgs
Canola Oil 872354.2 mL 872.3542 L
Tooty Sweety Corporation Page 56
Annual Orders 82317 Cheesecakes
Cookie Crumbs 2634144 grams 2634.144 kgs
Butter 167573.9 grams 167.5739 kgs
Sugar 323388.2 grams 323.3882 kgs
Cinnamon 392377.7 grams 392.3777 kgs
Cream Cheese 5327.086 grams 5.327086 kgs
Sugar 1769816 grams 1769.816 kgs
Whipping Cream 464503.1 mL 464.5031 L
Flour 94076.57 grams 94.07657 kgs
Vanilla Extract 88196.79 mL 88.19679 L
Eggs 23519.14 pcs 23519.14 pcs
Sour Cream 2666130 grams 2666.13 kgs
Chocolate Chips 1340591 grams 1340.591 kgs
Annual Orders 282419 Brownies
Butter 1994584 grams 1994.584 kgs
Sugar 3547889 grams 3547.889 kgs
Eggs 35302.38 pcs 35302.38 pcs
Vanilla Extract 176511.9 mL 176.5119 L
Cocoa Powder 753117.3 grams 753.1173 kgs
Flour 1129676 grams 1129.676 kgs
Salt 26476.78 grams 26.47678 kgs
Baking Powder 17651.19 grams 17.65119 kgs
Honey 4236285 mL 4236.285 L
Sugar 2259352 grams 2259.352 kgs
Tooty Sweety Corporation Page 57
5.21. Specifications
Overall, the business will serve pies, cakes, cheesecakes, bars and stacks,
brownies, cupcakes, pudding, custard, smoothies and frozen desserts. As part of
the marketing strategy of the business, every month a new product will be created
and the company will have a different theme every week depending on what is in
in the market.
Cakes Cakes are usually a sweet tender bread made with sugar and
delicate flour. The company will serve different types of cake. Since the
theme of the business is different every week, it is expected to have different
types of cakes depending on the theme of the said week.
Pies Pies are crust with different fillings. The crust are either made of
pastry or crumbs. The company will have different sets of pies depending
on the availability of raw materials and the themes of that particular week.
Cupcakes Cupcakes are small size cakes.
Custards and Puddings These types of desserts usually includes a
thickened base.
Frozen Desserts Frozen desserts usually include ice cream and gelatos.
Tooty Sweety will be producing different flavors of ice cream and gelatos
that its consumers will surely want.
Cheesecakes A sweet dish conatining one or more layers. It is composed
of cheese and other sweeteners and can be topped with different fruits.
Smoothies Blended sweetened beverages made out of fruits. Tooty
Sweety will be have different types of smoothies made out of fresh fruits.
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Brownies Usually, flat and baked square. It is close to being a cake and
cookie and cookie. Tooty Sweety will be producing chocolate chip cookie
brownies.
Table 5-2 Product Specification for Cupcake
Cupcake
Flour (8g)
Baking Soda (0.04 g)
Salt (0.06 g)
Butter (4.7g)
White Sugar (2g)
Brown Sugar (4g)
Egg
Vanilla Extract (10mL)
Semisweet Chocolate Chips (6.3 g)
Yellow Cake Mix (21.5g)
Canola Oil (3.3L)
Table 5-3 Product Specification for Cheesecake
Cheesecake
Cookie Crumbs (32g)
Butter (2g)
Sugar (4g)
Cinnamon (4.8g)
Cream Cheese (0.06g)
Sugar (21.5g)
Whipping Cream (5.6g)
Flour (1 g)
Vanilla Extract (1 mL)
Eggs
Sour Cream (32 g)
Chocolate Chips (16g)
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Table 5-4 Product Specification for Brownies
Brownies
Butter (7g)
Sugar (13g)
Eggs
Vanilla Extract (0.6 mL)
Cocoa Powder (2.7g)
Flour (4g)
Salt (0.09g)
Baking Powder (0.06g)
Honey (15mL)
Confectioners Sugar (8g)
The tables above show the specification needed in the production of one
cupcake, cheesecake and brownies.
5.22. Proof of Reliability of Raw Materials
Holy Carabao Holistic Farms practice organic and biodynamic farming so that
all the vegetables they produce are healthy, nutritious and abundant with live
enzymes.
Organic Farming
o Ensures that both the produce and the soil that nourishes it are free
from toxins.
Biodynamic Farming
o Works together with the life forces, rythms and natural cycles of the
earth.
o Experience the power to heal and encourage life.
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o It is the this healing power that they aim to harness in everything they
harvest.
Holy Carabao Holistic Farms believe that all of life is interconnected. They
treasure everything from seedlings to the wiggly worms that cultivated the soil.
5.23. Alternative Raw Materials
Tooty Sweety will get its raw materials from different suppliers so if one supplier
cannot provide our orders, then we can get it from other suppliers.
5.24. Availability of Supply
The information below are what the company needs in order to communicate with
the suppliers from time to time.
Holy Carabao Farms will be open from 9am-4pm
EMAIL|[email protected]
CALL or TEXT | 0929 752 1076 or 0920 46 88 785 & 0916 475 3211 for the delivery
of products
Bakels Philippines
Phone: (+63 2) 915 0372 to 74
Fax: (+63 2) 915 0375
5.25. Supplier
The main supplier for raw materials of the busincess will be coming from the Holy
Carabao Farms Holy Carabao Holistic Farm at Sta. Elena Properties Inc. Barrio
Malitlit, Sta. Rosa, Laguna. Another supplier of raw materials is the Bakels Philippines
Tooty Sweety Corporation Page 61
mailto:[email protected]
locatedat Suites 601 & 602 Raffles Corporate Center Don Francisco Ortigas, Jr. Road
Ortigas Center, 1605 Pasig City Philippines
The table below shows the raw materials, quantity and the price of each materials
from the companys main supplier.
Seasonal Fruits Quantity Price
Banana (latundan) Approx. 1kg 1.2kg Php 120/bunch
Banana (saba) Approx. 1kg 1.2kg
Php 100/bunch
Banana (tagalog) Approx. 1kg 1.2kg Php 100/bunch
Corn Php 90/medium pack
Indian Mango Php 50/medium pack Jackfruit/Langka Approx. 1kg Php 50/cut
Kamias Php 15/petite pack Kalamansi Php 15/petite pack
Lemon (green) Php 40/small pack Passion Fruit Php 150/medium pack Papaya Ripe Approx. 1kg 1.2kg Php 120/head
Buko Php 50/head Strawberries Php 147/small pack
Tooty Sweety Corporation Page 62
5.26. Material Cost Table
Table 5-5 Material Cost Table for Cupcake
Material Standard Quantity Unit Purchase Price Unit Price
Flour All-Purpose 8 g 50.00 1 kg 0.4000000 Baking Soda 0.041666667 g 21.50 500 g 0.0017917
Salt Sea 0.0625 g 20.00 1 kg 0.0012500 Butter Softened 4.708333333 g 78.50 225 g 1.6426852 Sugar White 2.083333333 g 60.00 1 kg 0.1250000 Sugar Brown 4 g 60.00 1 kg 0.2500000 Egg 0.166666667 pc 13.00 1 pc 2.1666667
Vanilla Extract 10 mL 220.00 450 mL 4.8888889 Chocolate Chips Semisweet 6.333333333 g 152.75 340.08 g 2.8446738 Yellow Cake Mix 21.55020833 g 68.50 500 g 2.9523785
Canola Oil 3.291666667 mL 70.15 380 mL 0.6076590 Total 15.8809937 Cost of Cupcake 50.00 Material Ratio 31.76%
The figure above shows the material cost for the production of each cupcake. The total cost of each cupcake
is Php 15.88, however, the company will be selling each quantity for Php 50.00, a price that is still competitive to its
competitors.
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Table 5-6 Material Cost Table for Cheesecake
Material Standard Quantity Unit Purchase
Price Unit Price
Cookie Crumbs 32 g 60.00 200 g 9.6000000
Butter Melted 2.035714286 g 78.50 225 g 0.7102381
Sugar Brown 3.928571429 g 60.00 1 kg 0.2357143
Cinnamon Ground 4.766666667 g 548.00 1 kg 2.6121333
Cream Cheese Softened 0.064714286 g 137.00 226 g 0.0392295
Sugar White 21.50000000 g 60.00 1 kg 1.2900000
Whipping Cream Heavy 5.64285714 mL 110.00 250 mL 2.4828571
Flour All-Purpose 1.142857143 g 50.00 1 kg 0.0571429
Vanilla Extract 1.071428571 mL 220.00 450 mL 0.5238095
Eggs 0.285714286 pcs 13.00 1 pc 3.7142857
Sour Cream 32.38857143 g 100.00 350 g 9.2538776
Chocolate Chips Semisweet 16.28571429 g 152.75 340.08 g 7.314875491
Total 37.8341635 Cost of Cheesecake 70.00 Material Ratio 54.05%
The production cost for each cheesecake is Php 37.83. However, the company will be selling each price for
Php 70.00
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Table 5-7 Material Cost Table for Brownies
Material Standard Quantity Unit Purchase
Price Unit Price
Butter 7.0625 g 78.50 225 g 2.4640278
Sugar White 12.5625 g 60.00 1 kg 0.7537500
Eggs 0.125 pcs 13.00 1 pc 1.6250000
Vanilla Extract 0.625 mL 220.00 450 mL 0.3055556
Cocoa Powder Unsweetened 2.666667 g 170.00 1 kg 0.4533333
Flour All-Purpose 4 g 50.00 1 kg 0.2000000
Salt 0.09375 g 20.00 1 kg 0.0018750
Baking Powder 0.0625 g 60.00 1 kg 0.0037500
Honey Semisweet 15 mL 350.00 550 mL 9.5454545
Sugar Confectioners' 8 g 60.00 1 kg 0.4800000
Total 15.8327462 Cost of Brownies 50.00 Material Ratio 31.67%
The table above shows the material cost for production of brownies. Each brownies costs approximately Php
15.83. Tooty Sweety will be selling each brownies for Php 50.00.
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5.27. Quotations
Table 5-8 Cost of Raw Materials for Cupcake
Material Purchase Price (Php) Unit Flour 50.00 1 kg
Baking Soda 21.50 500 g Salt 20.00 1 kg
Butter 78.50 225 g White Sugar 60.00 1 kg Brown Sugar 60.00 1 kg
Egg 13.00 1 pc Vanilla Extract 220.00 450 mL
Chocolate Chips 152.75 340.08 g Yellow Cake Mix 68.50 500 g
Canola Oil 70.15 380 mL
Table 5-9 Cost of Raw Materials for Cheesecake
Material Purchase Price (Php) Unit Cookie Crumbs 60.00 200 g
Butter 78.50 225 g Brown Sugar 60.00 1 kg
Cinnamon 548.00 1 kg Cream Cheese 137.00 226 g White Sugar 60.00 1 kg
Flour 50.00 1 kg Vanilla Extract 220.00 450 mL
Eggs 13.00 1 pc Sour Cream 100.00 350 g
Chocolate Chips 152.75 340.08 g
Tooty Sweety Corporation
Page 66
Table 5-10 Cost of Raw Materials for Brownies
Material Purchase Price (Php) Unit Butter 78.50 225 g
White Sugar 60.00 1 kg Eggs 13.00 1 pc
Vanilla Extract 170.00 mL 1 kg Cocoa Powder 170.00 1 kg
Flour 50.00 1 kg Salt 20.00 1 kg
Baking Powder 60.00 1 kg Semisweet
Honey 350.00 550 mL
Confectioners Sugar
60 1 kg
5.28. Utilities
The Utilities the business will need are electricity and water which is dependent on the
provider of Nuvali since the business will be built in the said area. The business will also
be needing cable for television as a sign of entertainment for the customers in the
restaurant and PLDT for telephone and internet services so that the business will be able
to address the orders through online and through calls.
5.29. Waste Disposal
The business will be considering the process wastes, packaging wastes and other
wastes incurred in the production of the products. The process wastes include dough flour
dust, sugar dust, burnt biscuits, broken biscuits, burnt loaves or rejected loaves and market
returned old bakery products. The company will sell these to suppliers who deal into cattle
feeding. Precaution should be taken that none of these have contamination so that it can
be used for cattle feeding. Packgaing wastes iinclude wrappers, tins, cardboard boxes,
bags, cores, polythene, sacks and plastic trays and pallets. Most of these can be recycled
by packaging material suppliers. Metallic scrap, wooden pallets, papers and bakery waste
water dry sludge are also wastes to be considered. Metallic scrap can be sold to scrap
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merchants, dry sludge and other can be sold to land filling contractors. Bakery waste water
can be treated and can be used for gardening and other cleaning purposes. Other wastes
include fat and oil contaminated and spent oil from machinery. These wastes could be sold
to recyclers. These may be considered as wastes but the business can styill get profit
through selling them to the right people. At the same time, bakery waste recycling is being
adopted by various companies to save cost and implements resource conservation.
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CHAPTER 6: Financing Aspects
6.1. Sources of Financing for the Project
The business will be funded through the contributions of the owners and through
loaning from Metrobank. The owners will give a capital of 500 000 each. And then
the business will obtain a loan of 2 000 000. So Tooty Sweety will now have a start-
up capital of 3 500 000.
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CHAPTER 7: Financial Statement
7.1. Statement of Financial Position First Year and Three Years Forecast
Assets 2016 2017 2018 2019 2016 2017 2018 2019
Current Assets:Cash 2,746,210.12 4,485,598.14 9,179,194.98 18,950,650.02 32.02% 50.57% 65.68% 76.68%Accounts Receivable 3,089,424.00 1,699,183.20 2,208,938.16 3,313,407.24 36.02% 19.16% 15.81% 13.41%Merchandise Inventory 680,192.91 673,390.98 666,657.07 659,990.50 7.93% 7.59% 4.77% 2.67%
Total Current Assets: 6,515,827.03 6,858,172.32 12,054,790.21 22,924,047.76 75.96% 77.32% 86.25% 92.75%
Non-Current Assets:Furnitures and Fixtures 110,000.00 210,000.00 310,000.00 410,000.00 1.28% 2.37% 2.22% 1.66%
Acc'd Depreciation (13,750.00) (47,500.00) (101,250.00) (175,000.00) 0.16% 0.54% 0.72% 0.71%Property, Plant and Equipment 2,162,174.00 2,262,174.00 2,362,174.00 2,462,174.00 25.21% 25.50% 16.90% 9.96%
Acc'd Depreciation (196,612.43) (413,224.86) (649,837.29) (906,449.71) 2.29% 4.66% 4.65% 3.67%Total Non-Current Assets: 2,061,811.57 2,011,449.14 1,921,086.71 1,790,724.29 24.04% 22.68% 13.75% 7.25%
Total Assets: 8,577,638.60 8,869,621.47 13,975,876.93 24,714,772.05 100.00% 100.00% 100.00% 100.00%103% 158% 177%
LiabilitiesCurrent Liabilities:
Accounts Payable 1,821,417.00 587,917.39 742,203.22 1,080,170.76 21.23% 6.63% 5.31% 4.37%Total Current Liabilities: 1,821,417.00 587,917.39 742,203.22 1,080,170.76