POLYTECHNIC UNIVERSITY OF THE PHILIPPINES COLLEGE OF BUSINESS
Department of Marketing
MARK 3093 DISTRIBUTION MANAGEMENT (BUSINESS PLAN)
TRUFFLELICIOUS so del del i ci ous ou s..
SUBMITTED TO:
PROFFESSOR JOCELYN C. GUEVARRA
SUMMITTED BY/S:
BAYOCA, ANA MARIE
FERNANDEZ, SYRIN
CENTENO, JOSEPH PAULO
GUMACAL, DAYANARA
DACLES, MARA JANE
JAVIN, MA. THERESA
FATALLO, JULIE ANNE
LABARINTO, ERON JOH
TRUFFLELICIOUS It’s so Delicious
BUSINESS PLAN BUSINESS DESCRIPTIONS
Trufflelicious is a NEW food service product of chocolate rolls with fruits inside it. It is a corporation owned company. It intended to cater customers who would like to taste a healthy, delicious, and new form of experience, and also it is for all ages and genders. With the warm ambiance of our spacious store to our freshly baked cupcakes to the wide selection of innovative coffee drinks and teas, you can also take home the Trufflelicious experience by getting a few boxes of cupcakes to share with your family and friends. You can be sure that every celebration is sweeter with Truffelicious.
GOALS AND OBJECTIVES
Trufflelicious business has a following goals and objectives: To obtain necessary funding To attain sales of more than P300,000 in the first year. To be franchise to different malls in second and third year To create a service-based company that exceeds customers expectations, and increases
the number of repeat clients serviced by at least 50% per year, through superior performance and word-of-mouth referral. To become an established community destination with a customer satisfaction rate of 90% by the end of the first year. To achieve cash flow self-sufficiency by the end of the first year. To expand to two stores by the fourth and fifth years.
KEY TO SUCCESS:
The keys to success for trufflelicious’ dessert include: Reputation: Every customer visiting our store will want to return and will recommend us
to their friends and family. Word of mouth marketing will be a powerful ally for our business. Superior Customer Service: Knowledgeable, friendly service will be of t he utmost importance. Location: Provide an easily accessible location for customer convenien ce, including walk-by and frive-by traffic.
Product Environment: Offer a variety of high quality foods with domestic and
international themes, sold at a fair price in a clean, authentic, comfortable environment. Convenience: Our customers will know that they can get what they need at our market for a fair price.
MISSION STATEMENTS
Trufflelicious is a hospitality product dedicated to providing high-quality desserts in a comfortable atmosphere for serving customer and giving them the satisfaction that they want in a fair price, service, and community.
MARKET ANALYSIS
Trufflelicious focuses on local markets in Metro Manila, with special focused on st different parties, malls, schools and universities. On our 1 year in the industry, Trufflelicious will focused on the students of Polytechnic University of the Philippines in Sta. Mesa, Manila. Our market is divided into four different psychographics. They represent gro ups of people sharing similar behavior patterns and reasons for patronizing trufflelicious.
COMFORT CREATURES are mainly white collar workers who are drive n by success and prestige yet this miss homemade comfort foods of their childhood. They may stop in on their own or bring clients in for a delicious dessert experience. Even if they had a busy and very tiring day with their career, they could find relaxation by eating truffles with coffee on our stall. CELEBRATORS are people love to celebrate special occasions. Birthday, anniversaries, graduation, valentine’s day, etc., Families could make an order to Trufflelicious through different packages. So they can enjoy their family gathering with Trufflelicious. SOCCER MOMS actually encompass all family members, for Trufflelicious is a gathering place where families are welcome and feel comfortable. Moms can bring home truffles to their children as her “pasalubong.” Or they can meet up with friends for tea time with matching trufflelicious dessert- a little civilized time stolen in the midst of a busy day. STUDENTS people inside and outside the schools that potentially can buy the trufflelicious. For most of the students love chocolates. This could give them energy and feel relaxed. In the first year of business, we personally focused on PUP’s students to gain more profit.
Sales
25%
27% Comfort Creatures Celebrators Soccer Moms Students
19% 33%
Market Analysis
Potential Customers
Growth
Year 1
Year 2
Year 3
Year 4
Year 5
Comfort Creatures Celebrators Soccer Moms Students Total
10% 15% 10% 15% 50%
10,000 10,000 10,000 10,000 40,000
11,000 11,500 11,000 11,500 45,000
12,100 13,225 12,100 13,225 50,650
13,310 15,209 13,310 15,209 57,038
14,641 17,490 14,641 17,490 64,564
Target Market Segment Strategy
We have successfully targeted segments of people with an appreciation for delicious desserts and a need for comfort and relaxation. Trufflelicious is a haven for the busy and successful who want to treat themselves to something soothing and little sinful! It doesn’t take a lot of time, yet is so rewarding. These people will value the high quality product presented without pretension. Our customers will also appreciate the fun and fast service – whether celebrating a birthday or shopping to the mall.
Competetion and Buying Patterns
Although trufflelicious is opening up a new niche in the desserts food industry, there is no doubt that we are competing with a variety of similar business. We need complete against the ideas that desserts is something that only follows a special dinner and needn ’t be and better than a frozen cake. We want every day to be a reason to celebrate. And being able to watch your gourmet desserts be prepared by a trufflelicious is a treat that appeals to everyone. While price may be a factor when competing against other brownies, these same customers who are willing to pay 12 pesos for a lattle truffles are already conscious of a better qu ality product. We believe they will be equally as willing to spend a little extra for an extraordinary dessert in a warm and friendly setting. The comfort factor also pays an important role ing consumer decisions about sweets. Boyh the atmosphere and staff of Trufflelicious excel at warm and friendly. And the menu will reflect “comfort food” desserts as opposed to intimidating desserts. We will use the highest quality products; sometimes paring the ordinary with the exotic, but we will always present our desserts in an unintimidating manner.
MARKETING PLAN 1. PRODUCTS AND SERVICE
TRUFFLELICIOUS sells healthy desserts coupled with exceptional customer service in a comforting atmosphere. We also offer to deliver our desserts at home or have a special different truffles combination for a celebration. Our products provide healthy and fresh fruit dessert truffles. TRUFFLELICIOUS is in a bite size. And it is made up of mashed cupcake or crushed chocolate cookies and cream cheese/cream with real fresh fruit tid-bits, and then coated with melted chocolates. And can be sprinkled with nuts, cocoa powder, confectioner sugar, and other stuffs. We came up with this product because we thought that eating chocolate all alone is somewhat boring and tiresome. So we think of something that can be combining with the truffles to make some twist with eating of it. And then we came up of adding some real fresh fruit tid bits that can balance the taste of chocolates and makes it more nutritious because it contains many vitamins and proteins. And now, you can enjoy eating chocolates without getting bored and afraid of having diabetes. Because TRUFFLELICIOUS provide you the sweet taste of chocolates and at the same time, the nutritious from fresh fruits. TRUFFLELICIOUS as a choice for celebrating, we will offer large reservations of truffles that will deliver in their places. You can use TRUFFLELICIOUS as an alternative for cakes and
cupcakes for your parties, such as, birthda y, anniversaries, debut and such. We cater such large volume of orders for those celebrations.
2. PRICING STRATEGY
Under in pricing strategy, we used the Cost-Plus Method of pricing. This method determined how we price our products based on the overhead costs(rent, utilities and wages) and the ingredients used in the truffles. But we price our products based on the customer that they afford it to buy. We also used the Location-Pricing Method to make our product more profitable. Food prices fluctuate often due to natural disasters or poor growing seasons. This means that the stable price will change based on food expenses. Now, how do we combine all of these calculations to come up with a price? Here are some basic guidelines we used :
Our price must be enough higher than costs to cover reasonable variations in sales volume. If your sales forecast is inaccurate, how far off can you be and still be profitable? Ideally, you want to be able to be off by a factor of two or more (your sales are half of your forecast) and still be profitable. We have to make a living. Have you figured salary for yourself in your costs? If not, your profit has to be enough for you to live on and still have money to reinvest in the company. Our price should almost never be lower than your costs or higher than what most consumers consider "fair".
3. DISTRIBUTION STRATEGY
Strategic distribution is a competitive advantage for a new existing product. There are several different possible distribution channels that can be used as a distribution strategy example for any product or service that a company is trying to bring to market. Companies may focus on one of these channels to provide the best results, but they may also take advantage of several different strategies. In many cases, using several different distribution strategies can help a company maximize their connection to customers in order to p ut more of their product in the customer’s hands. As a new existing product, it will help us to distribute our product through direct sales on the internet and also by having a stall where the buyers can purchase our product. We all know that most of people have already an access to internet, like in some social networking site such as Facebook, Twitter, Yahoo and many more. We assume that once we
were able to enter the world of such social networking sites, it will be easy to us to communicate to our customers. We can simply post information about our company and products, as well as , we can easily take their orders and then delivered it to them. And by having a stall to some places was also a help to us to distribute our product. All the people can visit our stall and they can take their orders there and enjoy the TRUFFLICIOUS. Customers can purchase our products there and can also bring it on their places. Because we have packaging that can be useful for their take-outs.
4. PROMOTIONAL STRATEGY
Trufflelicious’ promotional strategy will be education of the consumer and subsequent word-of-mouth. We will become known as a unique dining experience as well as a superior pastry shop. Customers will be reached through fliers, newspaper advertisements and special holiday promotions. Location will also play a crucial role in marketing and promotion. The business will be located in high-traffic retail area different malls, school and universities. Trufflicious will target progressive and generally well-educated and affluent consumers who are interested in trying new products and experiences and are dissatisfied with the limited selection and lack of personal service found in grocery store bakeries, neighborhood cafes and ice cream shops and area restaurants. Every year, trufflelicious business will change its themes through improving of products to make a great satisfactions from customer and giving some community involvement to cater the social responsibility of the business. SALES PROMOTION “ Everyone . . . meets our truffles ” • • • • •
to promote our product, we used flyers and word of mouth. we offer discount like for every purchase of one box of truffles we’ll give 2 pancake cookies for free. every holiday we make special offers like molding truffles according to occasions. in every special holiday our stall will be opened until 10 pm. nd we assume that on our 2 year we will serve on debut parties and weddin gs. Package A
- truffle cake (50pcs) - truffle float
Package B - truffle cake (50pcs) - give aways(50pcs)
- give aways (50pcs)
OPERATIONAL PLAN Business Permits And Licenses Processes
Business Permits and License Step 1: Business Name Registration Certificate in Department of Trade Industry -You may go to your Provincial Office. The Validity of this registration is 5 years.
Requirements:
Accomplished Business name Registration form (for sole proprietorship/Partnership).
Tax Identification Number (TIN)
Lists of 5 Business names ranked according to preference.
Registration fee: P300.00 Step 2: Mayor's/Business Permit -You can go to your local Municipality where the business is located. The Validity of this registration is 1 year. Requirements:
Accomplished Business Permit Application form
DTI Business name certificate
Sketch of the business location
Fire safety inspection clearence
Sanitary permit (city health officer)
Lease contract
2 pcs. 2x2 colored ID picture
Registration Fee (it depends on what type of business)
Step 3: Tax Identification Number (TIN) Bureau of Internal Revenue (BIR) - You can go to the National Office. Step 4 : Social Security System Certificate -You can go in East Ave., Diliman Quezon City. Requirements:
Accomplished R1 Form (Employer's Data Record)
DTI Business Permit
Mayor's Permit
Step 5: Department of Labor & Employment (DOLE) Registration (5 or more employees)
-Labor standard & enforcement Division -Gen. Malvar St. Malate Manila Requirements:
Accomplished Rule 1020 form Kay out Business location Vicinity Map
Step 6: Security and Exchange Commission (SEC) Certificate -You can go in SEC Building Edsa Greenhills Mandaluyong City. Requirements:
Verification slip form (Proposed Name).
Accomplished registration data sheet
Acticles of Partnership
Written under talking to change Corporation Name
If the contributed capital is in the form of property, additional requirement:
Deed of Assignmentexecuted by the stockholder who is the owner.
How to Make Truffles? Ingredients:
For Coating:
Chocolate cupcakes (optional)
Dark Chocolate
Fruit Cocktail/ Fresh Fruit
Peanuts
Cream
Milo Powder Sprinkles Rice Crispies
Crushed the chocolate cupcakes, and pour the cream and stir it until it turn thick. After it mold the mixture on the desired shape. Next stuffed the fruit inside the molded mixture and set it aside. For coating, melt the dark chocolate in the double boiler, when it is melted pour the cream. And set it aside. Crushed the peanuts then set aside. Coat the molded mixture in the melted chocolate and roll it into crushed peanuts or milo powder or any coating you want. After that place it on the wax paper and place it on freezer. SUPPLIES AND EQUIPMENTS:
• • • • •
Refrigerator Double Boiler Mixing Bowl Wooden Spoon Wax Paper STORE OPERATION
Our operation will start at exactly at 8am – 8pm. One will assign to handle the cashier, and some will make the truffles.
Everyone needs to be in the store at 6am, for some preparation of the store.
Every employee specially the truffle maker must wear plastic gloves and hair net to observe the cleanliness of the store.
In taking orders, it takes 1-2mins to serve the customers orders; customer must pay their bills as they receive their orders.
We have two shifts a day, in the morning and in the afternoon. Each employee must sign in the logbook given by the management.
EMPLOYEES SCHEDULES
]
Mon.
Tues.
Wed.
Eron
Cashier
Leave
Maker
Thurs.
Maker
Fri.
Leave
Sat.
Maker
Sun
Cashier
Sai
Maker
Leave
Maker
Cashier
Leave
Cashier
Cashier
Maan
Maker
Cashier
Leave
Maker
Maker
Leave
Maker
Dayanara
Cashier
Maker
Leave
Maker
Cashier
Leave
Maker
Julie
Maker
Maker
Cashier
Leave
Maker
Leave
Cashier
Theresa
Maker
Cashier
Maker
Leave
Cashier
Leave
Cashier
Mara
Leave
Maker
Cashier
Maker
Leave
Maker
Maker
Paulo
Leave
Maker
Maker
Cashier
Leave
Cashier
Maker
FINANCIAL PLAN
It is key to our financial success to grow Trufflelicious not ju st as a dessert stall, but as a company. We prepare to have a capital in our own wallet of P200,000 money in the first year with the hopes of eventually selling an estab lished chain of dessert bars or establishing our company as a gourmet franchise in the next four years. This means we must always be reinvesting in the future of Trufflelicious. Important Assumptions The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are: We assume a slow-growth economy, without major recession. We assume of course that there are no unforeseen changes in technology to make products immediately obsolete. We assume access to equity capital and financing sufficient to maintain our financial plan as shown in the tables.
Start-up Summary Our start-up costs come to P200,000 which is mostly production cost, store furnishings and construction, and starting inventory expenses associated with opening our first stall. The start-up costs are to be financed by our owned investment.
Start-up is for 1 month of operations.
Start-up Requirements Start-up Expenses Legal Registration
P11,000
Stall Supplies
P500
Production Costs (Maximum)
P80,000
Rent
P8,000
Advertising
5,000
Utilities
P5,000
Design & Construction of Stall
P26,000
Transportation
2,000
Expensed Equipment
40,000
Other expense(include the Uniform of the crew)
7,200
Total Start-up Expenses
P184,700
Start-up Assets Cash Required
P15,300
Total Assets
P15,300
Total Requirements
P200,000
Projected Profit And Loss
An important assumption when calculating our P&L is the increase in sales from year to year. We are basing our assumptions on the financial success to the number of target customer in one year. Our capital is more helpful. We computed the number may we sell in a day to day basis. In first year, 2 months our capital was cut into two, one for the expenses and the other half is for the productions. According to what we k now, our business will increase 30% every 2 months and in our 1 year in business, our estimated profit will increase by 50%.
Profit and Loss
Year 1
Year 2
Year 3
Year 4
Year 5
Sales
Php1,244,160 PhP2,488,320 PhP3,732,480 PhP4,976,640 PhP6,220,800
Direct Cost of Sales Other Production Expense Total Cost of Sales
80,000 200,000 320,000 440,000 560,000 20,000 30,000 40,000 60,000 80,000 Php100,000 Php230,000 Php360,000 Php500,000 Php640,000
Gross Margin Gross Margin %
Php1,144,160 Php2,258,320 Php3,372,480 Php4,476,640 Php5,580,800
91.96%
Expenses Payroll (8 Crew) 576,000 Stall Supplies 12,000 Utilities 60,000 Legal Registration and Licenses 11,000 Equipments 40,000 Payroll Taxes (3% of Total Payroll) 17,280 Design and Contruction of Stall 26,000 Insurance 120,000 Advertising 10,000 Transportation 12,000 Business Taxes Incurred 62,208 Other Expenses 7,200 Total Operating Expenses Php953,688 Net Profit Net Profit/Income %
90.76%
576,000 24,000 120,000 11,000 40,000 17,280 26,000 120,000 20,000 24,000 124,416 -
90.35%
864,000 36,000 180,000 11,000 40,000 25,920 26,000 120,000 30,000 36,000 186,624 3,600
Php1,102,696 Php1,559,144
89.95%
1,152,000 48,000 240,000 11,000 40,000 34,560 26,000 120,000 40,000 48,000 248,832 3,600
89.71%
1,440,000 60,000 300,000 11,000 40,000 43,200 26,000 120,000 50,000 60,000 311,040 3,600
Php2,011,992 Php2,464,840
Php190,472 Php1,155,624 Php1,813,336 Php2,464,648 Php3,115,960 16.65% 51.17% 53.77% 55.06% 55.83%
Legends: Direct Cost of Sales or Production Costs Gross Margin=Sales-Total Costs of Sales Gross Margin%=Gross Margin/Sales Payroll-in first year, 8 Crew and it will divide into two in second year, and every next year, we Hire 4 more crew every stall. Utilities are Light and Water Expense
Equipments (Double boiler and Refrigerator) Business Taxes is 5 % of total Sales Other Expenses include Uniform of Crew Net Profit=Gross Margin-Total operating Expenses Net Profit %=Net Profit/Gross Margin
Cash Flow
Year 1
Year 2
Year 3
Year 4
Year 5
Cash Received by Operations Cash Sales
Php1,244,160 Php2,488,320 Php3,732,480 Php4,976,640 Php6,220,800
Expenditure from Operations Cash Spending Bill Payments Subtotal Spent on Operations
576,000 299,688 Php875,688
Purchase of Long Term Assets
576,000 436,696
864,000 593,144
Php1,012,696 Php1,457,144
1,152,000 745,992
1,440,000 898,840
Php1,897,992 Php2,338,840
Php78,000 Php90,000 Php102,000 Php114,000 Php126,000
Subtotal Cash Spent
Php953,688 Php1,102,696 Php1,559,144 Php2,011,992 Php2,464,840
Net Cash Flow
Php290,472 Php1,385,624 Php2,173,336 Php2,964,648 Php3,755,960
Cash Balance
Php305,772 Php1,691,396 Php3,864,732 Php6,829,380 Php10,585,340
Legends: Cash Sales or Sales-are the money that stalls will receive. Cash Spending-it only include the Payroll Bill Payments-it includes the taxes, transportation, advertising, insurance, ect. Long term Assets-include the Stall, Equipment, and supplies Net Cash Flow=Cash Sales- Subtotal Cash Spent Cash Balance=in first year, Cash balance in First month of Operation(15,300) plus the net Cash flow. In Second Year, Cash Balance in first year plus the net Cash flow in Second year, and the same process in the next 3 years.
Balance Sheet
Year 1 Assets Current Asset Cash Inventory Other Current Assets Long Term Assets Total Assets Liabilities and Capital Current Liabilities Account Payable Borrowing Total Liabilities
Year 2
305,772 299,688 Php605,460
Year 3
1,691,396 436,696
Year 4
3,864,732 593,144
Php2,128,092 Php4,457,876
Year 5
6,829,380 745,992
10,585,340 898,840
Php7,575,372 Php11,484,180
-
-
-
-
-
Capital Piad In Capital Earnings Total Capital
200,000 190,472 Php390,472
486,000 1,155,624
716,000 1,813,336
917,000 2,464,648
1,190,600 3,115,960
Toatl Liabilities and Capital
Php390,472 Php1,641,624 Php2,529,336 Php3,381,648 Php4,306,560
Php1,641,624 Php2,529,336
Php3,381,648 Php4,306,560
