Project Pie Inc.

II. Company Background

A. History

James Markham was once a partner in building the Pieology in the United States (US).

But they had a conflict that resulted for James to make his own idea of artisan pizza. He set the

pizza to a higher level, making it into a customized pizza. Out of that idea, he developed Project

Pie. He established the first branch at MGM Hotel, Las Vegas at the last quarter of 2012. On

February 2013, the Project Pie partners in the Philippines trained for one month in US for the

development of the franchised branch here in the Philippines, in partnership with Shakey’s

Philippines. By August 2013, Project Pie Philippines opened its first branch at Shaw Boulevard,

Mandaluyong City. Philippines is one of the first Asian countries that got the franchise. Manila

can now experience how it is in Project Pie US – hip, slick, fun and always welcoming. They

highlight customer engagement and order.

The Project Pie concept is a customized artisanal pizza that has twenty-nine toppings to

choose from. The overall concept of the restaurant is 98% similar with the US branches; however,

the restaurant’s furniture and some of the toppings are brought locally.

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Project Pie Inc.

B. Organizational Chart

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Project Pie Inc.

III. Current Market Situation

A. Market Situation

The basic market need is high quality Artisan pizza, providing the best

pizza to the middle and upper class of the Metro Manila population. They have

variety of meals that best suits the target customers: they offer white pizza that

is suitable for customers who is currently on a diet plan and a big pizza meal for

customers who have a heavier appetite.

Project Pie Philippines was awarded the Best Pizza restaurant last 2013

by the social application “Looloo”. Despite being established for only less than a

year in the Philippines, they already captured the Filipinos taste and preferences.

B. Company Situation

1. Historical Company Data

Period 1(December 2013-February

2014)

Period 2(March-May)

Period 3(June-August)

Industry Sales Php 208,970,650 Php 270,891,564 Php 316,030,534

Company Market Shares

4.25% 11.73% 17.03%

Sales Revenue 8,881,253 31,775,581 53,816,839

Row 1 shows the industry sales of the whole pizza restaurant from December 2013 to February 2014

Row 2 shows the industry sales of the whole pizza restaurant from March 2014 to May 2014

Row 3 shows the industry sales of the whole pizza restaurant from June 2014 to August 2014

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Project Pie Inc.

Period 1 (December 2013-February 2014)

SALES MARKET SHARE

PROJECT PIE Php 8,881,253 4.25%

PAPA JOHN’S 73,515,875 35.18%

NOLITA 8,985,737 4.30%

OTHERS 117,587,785 56.27%

TOTAL: Php 208,970,650 100%

Period 2 (March-May) SALES MARKET SHARE

PROJECT PIE Php 31,775,581 11.73%

PAPA JOHN’S 106,433,295 39.29%

NOLITA 10,537,682 3.89%

OTHERS 122,145,006 45.09%

TOTAL: Php 270,891,564 100%

Period 3 (June-August) SALES MARKET SHARE

PROJECT PIE Php 53,816,839 17.03%

PAPA JOHN’S 82, 894,809 38.23%

NOLITA 10,776,641 3.41%

OTHERS 168,542,245 41.33%

TOTAL: Php 316,030,534 100%

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Project Pie Inc.

C. Competitive Situation

Project Pie major competitors in pizza industry are Papa John's and Nolita. The two competitors

have their own uniqueness and specific strategy to gain customers compare to the other popular pizza

food-chain. Papa John’s is the fourth largest take-out and delivery pizza restaurant chain in the United

States while Nolita is a big, authentic, New York style pizza. Though there are competitors, Project Pie

Philippines is a lot unique and different than the two said restaurants. As of now, Papa John's have

already 16 stores in Manila, Nolita have only store while Project Pie currently have 7 stores in the

Philippines and more to come.

COMPARATIVE LIST OF PAPA JOHN’S, NOLITA AND PROJECT PIE’S PRODUCTS AND ITS PRICES

PAPA JOHN’S

PIZZAS REGULAR FAMILY PARTYSuper Papa 340 470 575All the meats 340 470 575John's Favorite 340 470 575Spicy Italian Meatballs 275 415 485Texas Heat 275 415 485Chicken Barbeque 275 415 485Chicken Bacon Ranch 275 415 485

SALADS PRICECaesar Salad 99

DESSERTS PRICESundae Triple Scoop 89Sundae Single Scoop 39Ice cream floats 79

DRINKS PRICE *Coca-cola productsBottled Mineral Water 30Coke, Coke zero, Sprite, Sarsi, Iced Tea 55 *Italian Sodas 79 *Parfaits 125 *Milkshakes 110

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Project Pie Inc.

NOLITA

PIZZAS MEDIUM LARGEHouse Pies 870 1160Tomato, Olives and Onions 870 1160Fresh tomato and Garlic 980 1130Spinach and cheese 980 1130Broccoli and Cheese 980 1130Pesto and Fresh Tomato 980 1130Cheeseburger 1140 1520Spicy Italian Sausage 1140 1520Spinach and Artichoke 1140 1520

DESSERT PRICECannoli 100Bannoli 100Big chocolate Chunk Cookie 95White chocolate Peanut Butter Tiramisu 240Triple Chocolate Pudding Tiramisu 240Funnel cake 110Strawberry Jam on the side 20

DRINKS PRICESoft drinks in can 60Bottled water 40San Miguel Light 70 * Imported Beers 190Hefeweizen 190Marzen 210Oatmeal stout 220Ipa big eye 240Dead guy ale 240

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Project Pie Inc.

PROJECT PIE

PIZZAS PRICE1.)Classic Cheese Pie 2452. )Pepperoni, Italian Sausage, Crumbled Meatballs, Mozzarella, Signature red sauce, Garlic

285

3.) Tomato, Artichoke, Red union, Pesto, Feta, Mozarella 2854.) Sliced tomatoes, Fresh Chopped Basil, Mozarella, Parmesan, garlic 2855.) Mozarella, Ricotta, Gorgonzola, Parmesan, Cracked Black pepper, Olive oil, Garlic,Fresh Chopped basil

285

6.) Grilled Chicken, Sliced Red onion, cilantro, Mozarella, Gorgonzola, barbeque sauce

285

7.) Proscutio, Caramelized Unions, Mozarella, Parmesan 285

DESSERTS PRICEBanana Nutella 145Peanut Butter Nutella 145Strawberry Mango Nutella 195Cinnamon Sugar 145Parmesan garlic 145

SALADS PRICEClassic Caesar 165Mixed Greens 225Pizza Salad 245

DRINKS PRICEBottled Water 50Coca-cola, China Mist Iced Tea 65Domestic Beer 65Sparkling Water 100Imported beer 150

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Project Pie Inc.

D. Distributive Situation

Project Pie Philippines’ main office is located at Unit 303 Gateway Center Paseo de

Magallanes, Makati City. It has several stores in Quezon City, Makati, Mandaluyong, Pasay,

Taguig and Muntinlupa.

At present, the company has 7 stores strategically located in Metro Manila, with the first

branch opened last August 1, 2013. These are the Shaw 515, BlueBay Walk, Block 28 Alabang,

Palazzio Eastwood, Fairview Ayala Terraces, SM North Edsa and Park Square branches. Now,

they are currently in the process of opening two more branches before the year ends. This

October 07 2014, Project Pie will open new branch in Valero and October 25 in Tomas Morato

(beside Zirkoh Comedy Bar) in Quezon City.

E. Macro environment Situation

Project Pie is currently establishing its name in the Philippines with a fast growing

market. It operates in a macro environment of forces and trends that shape opportunities and

post threats. These macro environmental forces are – political, economic, socio-cultural and

technological trends.

E.1 Political Environment

Project Pie is a private owned and controlled corporation, therefore, its ability

to promote and spend depends on the company itself. There is no total government

control except for the collection of taxes and implementations of laws affecting the

business. However, the truck ban imposed by Manila Mayor Joseph Estrada which

caused port congestion had adversely affected the business operations. Since it severely

disrupted the port operations, it affected the delivery of the tomato sauce of Project

Pie.

E.2 Economical Environment

Despite the economic threat brought by the port congestion, Project Pie’s

current business environment is economically growing steady in the Philippines. The

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Project Pie Inc.

Philippines is no longer regarded as the sick man of Asia and is currently known as the

rising tiger of Asia when it comes to economic stability. The country’s economy grew

6.4% (GDP) this year on the second quarter, making it one of Asia’s fastest growing

countries and deepening expectations for further rate increases. Since the country’s

economy is doing well, people will tend to spend more.

E.3 Socio-cultural Environment

Since Project Pie came from the United States, Filipinos are still adapting to the

newly brought Pizza Parlor. The western culture is gradually being taken inch by inch by

the Filipinos. Also, being family-oriented, we spend most of our times together with our

family and we love to enjoy each other’s company. Similar to what Project Pie offers, the

awesome experience and bonding with family or friends. Therefore, the awesome

experience it provides the customers by giving the best service is what Filipinos love

with Project Pie.

E.4 Technological Environment

The newly emerging technological breakthroughs gave way to the improvement

of all the businesses in all aspects. In the aspect of operations, the developments of

baking and heating ovens led to producing more pies with less time and effort. The

advent of technology also makes it easy for their cost-efficient ways of publicizing and

advertising their products rapidly.

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Project Pie Inc.

IV. Opportunity and Issue Analysis

A. Opportunity Analysis

1. Technological breakthroughs in baking and heating ovens2. Social Media 3. Blog reviews4. Television Features5. Loyal Customers who invites others to try

B. Threat Analysis

1. Competitors threat2. Customer indifference to the culture brought by Project Pie3. Truck ban which caused port congestion

C. Main Strength

1. No discrimination among ranks thus making the bonds among staffs stronger

2. Unique selling proposition

3. Fast service

4. Stores have relaxing ambience

5. Friendly staffs

6. Staffs are fluent in English

D. Weakness Analysis

1. Menu is very limited

2. Prices are not very economic compared to other cheap fast food chains

3. The brand is not that famous because of lack of advertisement

4. No delivery

5. Depreciation of expensive kitchen tools

6. Stores have different operating hours

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Project Pie Inc.

E. Issue Analysis

With a number of pizza restaurant making it on top, it seems like varieties of pizza restaurants

have figured out how to play off Filipinos’ growing affinity towards more unusual cuisines. Project

Pie Philippines, as the Best Pizza Restaurant in 2013, must maintain their hype and consistent high

ratings. By providing our custom made artisanal pizza fresh, crust and delicious; Project Pie PH team

decided not to engage in delivery services. Though pizza having delivered at your door step is more

convenient, we still want to practice the non-traditional service and have great customer

engagement. As well, Project Pie practices non-traditional advertising, we do not want to set off

with TV commercials, banners or streamers and radio announcement. With people twenty-four

seven on the World Wide Web, it will be opportune to introduce Project Pie at the Market through

social media pages like Facebook, Twitter and Instagram. Project Pie PH team will also launch their

Philippines’ Website for easy access of updates of menus and for new stores near you. With a

number of toppings Project Pie offers, and the freedom to custom built your own pizza, Project Pie

PH has still have a big room for expanding our menu that will suit customer preferences. Food

choice that is not only for weight conscious but also for those who have heavier appetite. One of the

reasons why Project Pie PH captures the market is by their customer engagement. We only not want

guests to enjoy our pizza but at the same time for them to enjoy each other’s company, surely

Project Pie PH will engage in Reservation services.

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Project Pie Inc.

V. Objectives

A. Financial Objectives

1. To produce a net income before tax of Php 31,426,660 in year 2014.

2. To achieve target sales of Php 215,370,000.

B. Marketing Objectives

1. To expand customer awareness of the Project Pie products and services by allotting an advertising and sales promotion budget of 8,631,750.

2. To expand the number of branch outlets 7 to 9 for the year 2014.

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Project Pie Inc.

VI. Marketing Strategy

A. Target Market

Project Pie’s marketing strategy is focused on young crowd, young adults to senior citizens.

Particularly those who belong in the upper class of society.

Demographics

Costumers of Project Pie are commonly male and female, of all ages. They may be:

young adults or senior citizen, from students to employees and professionals or simply

those who needs an awesome experience. Their target markets are also young

professionals who work close to their location. Most of their markets are currently

attending schools and/or have graduated who tend to patronize high-end quality

restaurants.

Psychographics

Project Pie targets class A, B, and C. These groups of people are at the higher class level.

They are also the kind of costumers who are looking for the speed of fast food chain and

the urbanity of fine dining. Their markets enjoy a high quality meal with the pleasure of

making the pizzas themselves. They also value the appearance or presentation of the

food. Project Pie aims to meet their maximum satisfactory level by by giving them

awesome experience.

Geographic

Project Pie caters the costumers from the high-end of Metro Manila places such as

Mandaluyong, Quezon City, Pasay, Makati, Muntinlupa to Taguig.

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Project Pie Inc.

B. Positioning

Positioning involves designing a product that benefits the target segment. It is very critical

to every company to position their products and services in the market. According to Project Pie's

operations manager, they actually identified what is being lost in the customers' minds. As they

came up with the idea of "Artisan pizza," it means that customers can apply arts in making their

own pizza. It truly became a big hit in the market. As we can see, Mr. James Markham successfully

formulated a different or unique kind of pizza. It is an evidence that Project Pie is globally

competitive. Consumers say that they experienced "awesome," "cool," "fresh," and "hipster" type

of pizza. These are what Project Pie instills in their customers so with that, many have truly want

to experience also what Project Pie can do and feel the awesome experience. Not only that,

Project Pie's marketing team continues to excavate various places that aren't being established yet

because they believe that positioning their products must be everywhere, especially to those hard

to reach areas.

C.Pricing Strategy

Project Pie uses the PENETRATION PRICING STRATEGY where they initially price their

product lower than the eventual market price. This is usually done by starting businesses. They do

this to attract new customers. And because, Project Pie started only a year ago, this would be a

good pricing strategy to use. This strategy’s objective is to increase market share or sales volume

rather than to make profit in a short term. After gaining the market share, they could eventually

raise the price with the objective to increase their profit.

D. Service

Project Pie will be adding a new line of services for their customers to enjoy their

awesome experience. Besides providing the Build Your Own pizza, they will be

accommodating party reservations for the first 100 customers to reserve. With the said

reservations, they will give free cakes for the celebrator, they will be provide a divider to

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Project Pie Inc.

seclude their party area and they will also provide key chains with the logo of Project Pie

as party giveaways. Also in the list of new services is having a website exclusively for

Philippine setting. We will also add a new form of entertainment for our customers by

providing some board games, UNO cards and also books while enjoying their food. This

will increase the customers bond and will flare-up their awesome experience.

E. Sales Force

Project Pie will select their employees not just based on their qualifications of the job they

are applying for but also by their attitudes, commitment, energy level and of course good in

building customer relationship. Employees will be interviewed not just by the HR employees but

also by the other persons who held a higher position to choose an applicant who has a great

personality and values, since Project pie is concerned about the satisfaction of the customers.

They will pick the employees that will uphold the company's image with great integrity. Employees

will not only be trained about their functions as a worker but also be train in terms of values and

culture of the Project Pie family in order to provide customers the "awesome experience". They

will make sure that the employees will not only develop their skills but also develop themselves as

a person.

Building a good relationship from the owner up to the lowest position of the employees will

be given importance to motivate workers not only in terms of compensation but as an individual.

They will give awards, gift certificates for those employees who would perform well; they will also

conduct events like bringing the families of the workers and enjoying the foods in Project Pie for

free. Performance is also to be checked and observed. Project Pie will go beyond ordinary to

increase sales with the help of their valued employees.

F. Distribution Channel

Considering having only opened for only a year now, Project Pie has already opened seven

branches- Shaw 515, BlueBay Walk, Block 28 Alabang, Palazzio Eastwood, Fairview Ayala Terraces,

SM North Edsa and Park Square- in total as of August 2014. Now, they are currently in the process

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Project Pie Inc.

of opening two more branches before the year ends. They will be expanding in the locations of

Tomas Morato and Valero. They target to have 25 branches in total for the year 2018.

G. Advertising

Project Pie is a non-traditional pizza restaurant. They don’t do commercials, they

advertise through social networking sites like Facebook or Instagram. The advertising can

be done by doing contests for the own recipe of the pizza. They will submit the ingredients

of their own customized pizza and if the management loved it, it will be included to the

Project Pie’s menu. There will be one winner every month for all the seven stores. There

will also be loyalty cards with earned points. Another is the collection of wooden nickels

from September to December in exchange of a planner or a mini wallet. And last is the

Color Your Pizza, support your team with the designated color of the UAAP team you

support in basketball. Volleyball and cheer dance.

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Project Pie Inc.

VII. ACTION PROGRAM

ACTION PROGRAM PERIOD ACTIVITIES DEPARTMENT RESPONSIBLE

BUDGET

A. SERVICE May – OnwardsJanuary - OnwardsMarch -Onwards

ReservationPh WebsiteEntertainment

Operation Management

Php 1,001,500

B. SALESFORCE Team BuildingRecognition

Store Managers / Team Leader

Php 451, 980

C. DISTRIBUTION CHANNEL

Branch Out Operation Management

Php 29,000,000

SALES PROMOTION AND ADVERTISING

January - OnwardsJuly - OnwardsAugust - MarchSeptember - December

Pizza Acknowledgement Loyalty CardsColor Your PizzaPromo Freebie: Wooden Nickel

Marketing Department and Sales Department

Php 8,631,760

A. Service

Reservation for parties:

Reservation for parties will consist of 20-30 persons in line to the main goal of the company is to have an

engagement between their customers. It will involve people under the reservation to put all their

toppings they want on their pizza personally so they can have an awesome experience. They will also

have the privilege to have a special merchandise especially from Project Pie. The allotted budget for this

project is Php 826,000.

Website:

Project Pie should create a website that is exclusively or the Philippines. Through this, Filipinos can easily

identify the branches near their location. They can also see the ingredients that are available in the

country. They can also easily access the reservations because the contact numbers per branch will be

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Project Pie Inc.

posted there and they wouldn't be mistaken the other branch as part of the Philippine branches. This

website will cost Php 67,000 but can make things more organize for the company.

Entertainment:

To add a cozy feeling in the restaurant while waiting for your pizza, we have board games available for

you. You can have a friendly game with your family and friends that will also strengthen your bond. If

you happen to eat alone we have available novels for you or if you brought kids ages 9 below we also

have story books available in our restaurant. This is to provide customers comfort and awesome

experience which will cost them Php 108,500.

Adding all the costs, the total cost that will be incurred for the action program for service is Php 1,001,

500.

B. Salesforce

Team Building:

Project Pie will increase their sales force in terms of boosting their employees’ confidence and motivation

by administering team buildings yearly that will worth Php 355,920 as allotted budget.

Recognition:

Not only that' Project Pie can express their appreciation to their hardworking, deserving "partners"

through awards night at the end of every year. At the same time, all of them can demonstrate love and

affection to each other since this event goes with the Christmas season. The said program will cost them

Php 96,060.

Totaling the costs of the said projects, it will add up to Php 451, 980.

C. Distribution Channel

Branching out:

Project Pie will is branching out to reach their target - 25 stores in 5 years – and they currently have 7

open branches. This year they will be opening two new branches to attain that goal. They will be

branching out in Tomas Morato which will be incurring a cost worth Php 14,000,000 and also in Valero

which will cost them Php 15,000,000.

The total cost they will incur for branching out is Php 29,000,000.

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Project Pie Inc.

D. Advertising and Sales Promotion

Contests:

Project Pie will announce the contest via official Facebook page. Contestant will be asked to submit

original pizza recipe to the management on any branch. Only ONE winner will be selected each month.

The prize is: 1 whole meal for 2: pizza, dessert pie, salad, drinks with Php 18,960 allotted budget.

Colour Your Pizza:

In line with UAAP season, dessert pizzas in the universities' colours will be made, e.g., strawberry for

maroon (UP) and red (UE), mango for yellow (UST), avocado for green (La Salle and FEU), and blue

coconut (ADMU and AdU). Pizzas will be available only from 2-5PM, on Fridays, Saturdays, and Sundays,

with only 30 pizzas produced each day. This project will cost them Php 235,200

Loyalty Cards:

Membership may be availed through any of the following: single-receipt purchases worth Php 1,000 or

membership fee of Php300.00. The card will accumulate points. Purchases worth Php15.00 is equivalent

to1 point. Loyalty card points may be used to purchase items. The allotted budget for this project is Php

805,000

Wooden Nickel:

This will be effective on Christmas season, starting September. 1 nickel will be given for every Php 1,000

worth of purchases. With 10 nickels, the customer may choose to exchange his/her points for any of the

following: planner of design of choice (available in 3 designs) or wallet. This project will cost them Php

7,572,600.

Adding up all the costs, it totals to Php 8,631,760.

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Project Pie Inc.

BREAKDOWN OF EXPENSES FOR THE ACTION PROGRAM

ACTION PRAOGRAM ACTIVITIES BREAKDOWN OF EXPENSES TOTAL

1. SERVICE Reservation

Ph Website

Entertainment

Php 8,000 x 7 stores = Php 56,000Php 500 x 100pcs x 7 = Php 350,000Php 20 x 300 pcs x 7 stores = Php 420, 000

Php 55,000Php 12,00

Php 4,000 x 7 stores = Php 28, 000Php 2,000 x 7 stores = Php 14, 000Php 6,000 x 7 stores =Php 42, 000Php 1,000 x 7 stores = Php 7, 000 Php 2,500 x 7 stores = Php 17, 500

Php 826,000

Php 67, 000

Php 108, 500

Php 1,001, 500

2. SALES FORE Team Building

Recognition

Php 10, 000 x 3 = Php 30,000Php 1, 680 x 174 employees = Php 292, 320Php 33, 600

Php 300 x 174 employee = Php 52,200Php 1,020 x 43 = Php 43,860

Php 355, 920

Php 96, 060

Php 451, 980

3. DISTRIBUTION CHANNEL

Branch Out

Tomas Morato

Valero

Php 14,000,000

Php 15,000,000

Php 14,000,000

Php 15,000,000

Php 29,000,000

4. SALES PROMOTION AND

Pizza Acknowledgement Php 720 x 2 x 12 = Php 18, 960 Php 18,960

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Project Pie Inc.

ADVERTSING Loyalty Cards

Color Your Pizza

Promo Freebie: Wooden Nickel

Php 23 x 5,000 pcs x 7 stores = Php 805,000

Php 200 x 96 x 7 stores = Php 134,400Php150 x 96 x7 = Php 100,800

Php 4 x 18,000 pcs x 7 stores = Php 504,000Php924 x 450 pcs x 7 stores = Php2,910,600Php1,320 x 450 pcs x 7 stores = Php4,158,000

Php 805,000

Php 235,200

Php 7,572,600

Php8,631,760

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Project Pie Inc.

IX. Budget Control

A. Efficiency Control

1. Sales EfficiencyOur company will monitor the following:

a. Performance of the stores in terms of salesb. Franchisees attending the conference

2. Advertising EfficiencyOur company will keep track of the following:

a. Effective and efficient execution of advertisementb. Percentage of audience who noted, saw, heard, associated, and read the about Project

Pie.

3. Distribution EfficiencyOur Company will keep track of the following:

a. Observe the time of serving of the productsb. Freshness of the products when it reach the stores and customers

B. Budget Control4. Monthly monitoring of expense rate so as not to exceed with the forecasted budget5. The company will check the financial reports every quarter of the year.

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Project Pie Inc.

VIII. Projected Profit and Loss Statement

Project PieProjected Profit and Loss Statementfor the year ended December 2014

Income Net Sales Total Sales

P 215,370,000 P 215,370,000

Cost of Sales Inventory, January 1 Purchases Total available for sales Inventory, December 31 Total Cost of Goods Sold

P 10,520,50483,498,99294,019,496

12,036,010P 106,055,506

Operating Expenses Salaries and Wages Sales Promotion and Advertising Rent Expense Light and Water Telephone and Communication Licenses and Fees SSS/HDMF Premium Depreciation and Amortization Service Sales Force Repair and Maintenance Insurance Amortization and Pre-operating exp. Representation Miscellaneous Total Operating Expenses

Net Income from Operation before taxes

P 18,230,5008,631,760

12,400,0006,825,6004,389,9009,680,0002,791,1352,979,8791,001,500

451,980251,950

9,896,560120,560154,980

98,650P 77,887,834

31,426,660

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Project Pie Inc.

pg. 24