INTRODUCTION COMPANY LOGO
PROJECT SUMMARY
The project, Waffle Time in V-Central Mall Molino, is a franchise business that aims to provide affordable snacks with a wide variety of waffle flavors that fits in all ages and and in all occas occasion ions s The The overa overallll study study as suppo supporte rted d by the the marke marketin ting, g, tech technic nical, al, financial analysis proves to be feasible and satisfying in terms of profit and sales Moreove Moreover, r, a look into the managem management ent aspect aspect determi determines nes the organi! organi!atio ational nal and operational elements essential in the development of this undertaking
GENERAL BACKGROUND OF THE PROJECT
"ue to economic crisis, many #ilipinos will find their ways to earn income to support their families$ needs Today, one of the considerations is the food cart business because it does not need a huge capital %owever, in order to succeed in a food cart business, one should have a good product and a perfect location for the food cart
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&deally, food cart should be placed on traffic streets, malls, and in a public market or grocery store wherein there are lots of people Mr 'ohnny (ue, president of Waffle Time, said that the )main franchising lesson Waffle Time learned was that an established business system is a prere*uisite door a seamless franchise program for it would then be easier for internal and controls to be effi efficie cient ntly ly enfor enforce ced d +nce +nce this this is in place place,, the franch franchise iserr can can go on to look look for a committed and dedicated franchisee that will take care of the brand With franchisor$s support and assistance to novice entrepreneurs, a win-win partnership is ensured Waffle Time is a business that was chosen by the fourth year students from Cavite Cavite tate tate .niversi .niversity ty,, who aims to provide provide accessi accessible ble and afforda affordable ble snacks snacks for children, students and busy persons &t is located at ground floor, V- Central Mall Molino, is one of the best place to put up the business because of few competitor available and there is a space available for lease /side from it, V- Central is a community Mall that caters all the needs of its surrounding community The mall is located along Molino 0oulevard, which is the main highway into 0acoor leading to and from Coastal road and by e1tension, Macapagal, 2o1as 0oulevard, and Metro Manila Molino 0oulevard is currently currently in the process process of largelarge- scale scale and subdivi subdivision sion developmen developments, ts, with large, large, national developers such as Vista land and #ilinvest &n line with this, years from now, the growing community will be a great advantage for the Mall where we locate our business
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&deally, food cart should be placed on traffic streets, malls, and in a public market or grocery store wherein there are lots of people Mr 'ohnny (ue, president of Waffle Time, said that the )main franchising lesson Waffle Time learned was that an established business system is a prere*uisite door a seamless franchise program for it would then be easier for internal and controls to be effi efficie cient ntly ly enfor enforce ced d +nce +nce this this is in place place,, the franch franchise iserr can can go on to look look for a committed and dedicated franchisee that will take care of the brand With franchisor$s support and assistance to novice entrepreneurs, a win-win partnership is ensured Waffle Time is a business that was chosen by the fourth year students from Cavite Cavite tate tate .niversi .niversity ty,, who aims to provide provide accessi accessible ble and afforda affordable ble snacks snacks for children, students and busy persons &t is located at ground floor, V- Central Mall Molino, is one of the best place to put up the business because of few competitor available and there is a space available for lease /side from it, V- Central is a community Mall that caters all the needs of its surrounding community The mall is located along Molino 0oulevard, which is the main highway into 0acoor leading to and from Coastal road and by e1tension, Macapagal, 2o1as 0oulevard, and Metro Manila Molino 0oulevard is currently currently in the process process of largelarge- scale scale and subdivi subdivision sion developmen developments, ts, with large, large, national developers such as Vista land and #ilinvest &n line with this, years from now, the growing community will be a great advantage for the Mall where we locate our business
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BACKGROUND
Waffle Time started on eptember of 3445 in the province of &loilo, 6hilippines as a simple business venture &t is the first and original purveyor of delicious, nutritious and reasonably- priced waffles in a cart, with a vast selection of e1citing flavors to choose from The first outlet was in The /trium Mall, 7en 8una t &loilo City +n 'une 9::9, Waffle Time started to penetrate the Metro Manila market /fter which, they opened outlets in Cebu, Cagayan "e +ro, "avao, "agupan Waffle Time opened its door to franchising on March 9::;
VISION
erving the best waffle in the world across all races beyond all borders
MISSION • • • • •
To establish a strong )Waffle Time brand image To develop a creative and assertive human resource To continuously re-invent waffle To delight customers cust omers To achieve high level of efficiency
OBJECTIVES
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The project intended to promote delicious and nutritious yet affordable waffles for youths and adults of Molino < and surrounding communities
SPECIFIC GOALS • •
• •
To continuously re-invent at least two waffles every end of the month To achieve high-level of efficiency by improving the production and operation process by the current month To increase sales by => on the two following consecutive months To establish strong brand image to the new market on the end of the first month by means of advertising
LEGAL ISSUES
/re there there any legal legal re*uirements re*uirements or or issues we need need to look at or attend attend to? 0.&@A 6/6A2 @AA"A" T+ +6A2/TA T%A 0.&@AB 3 9 < ; = E F 5
0ureau 0ureau of of &ntern &nternal al 2even 2evenue ue 0&2 0&2DD May Mayor$s or$s per permi mitt T&@ ecurit ecurities ies and and A1chan A1change ge Commiss Commission ion ACD ACD Communit Community y Ta1 Certi Certifica ficate te @0& @0& cle clear ara ance nce 6oli 6olice ce clea cleara ranc nce e Cour Courtt clea cleara ranc nce e
62+CA".2A #+2 /668&C/T&+@B 3 ubmit application to the #ranchise +fficer or /rea Manager o #ranchise /pplication #orm with 9pcs 919 picture 4
o ketch map of proposed outlet location o 8etter of &ntent indicates the complete address of the target siteD 9 .pon submission, there will be a one-on-one &nterview with #ranchise +fficer or /rea Manager < /pplica pplicant nt will will then then receiv receive e a feedb feedback ack if the the appl applica icatio tion n has been been appr approve oved d or disapproved within one 3D week from submission of franchise application ; &f approved, the applicant will then be oriented and will be re*uired to conduct a foot traffic assessment of the propose space = #ranchise applicant will be given a ma1imum of ten 3:D days to submit the site evaluat evaluation ion report report The submitted submitted site evaluation evaluation report will will then then be evaluat evaluated ed and verified E +n the 3:th day, the following documents will be submitted together with the ite evaluation reportB o Community Ta1 Certificate o @0& clearance o 6olice clearance o Court clearance o /uthority to check bank account o 6rocessing fee of 6=,::::: F 2eview and igning of /greement
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5 6ayment of =:> franchise fee 4 Training G +rientation on +utlet +perations of both franchisees and their prospective crews 3: #ull payment of franchise fee, security deposit and initial stocks o 6=, ::::: processing fee is deductible from the total franchise package costH but is non-refundable in the event that the application is not granted by the company for whatever reasons 33 7rand opening of franchise outlet
ANALYZING ANALYZING THE ENVIRONMENT ENVIRONMENTAL CLIMATE
3D What are the relevant social, political, economic and technological trends? +C&/8 • •
•
•
6eople tend to look for budget wise foods or snacks to save earnings Today, the people are looking for healthier snacks, those that satisfy their cravings yet will not destroy their diet / larger percentage of people today are employees employees or into business that they prefer a = minutes *uick snacks #oreign products are being patroni!ed by the locals
AC+@+M&C •
Ther There e is a trem tremen endo dous us grow growth th in fran franch chis isin ing g food food cart cart busi busine ness ss in the the 6hilippines
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• •
#ood cart industry has brought in at least 30illion 6esos in sales every year &ncreasing numbers of two-income households in the country
6+8&T&C/8 •
&t is a must to undergo a legal process and comply by the needed re*uirements
•
when starting a business in the country 2egistering the business with "T&, &6+, 0&2, and get the necessary business permits in the barangay and municipalGcity hall
TAC%@+8+7&C/8 •
@ew designs of waffle iron are being innovated for better appearance of the products
9D %ow do you evaluate these trends? "o they represent opportunities or problems? ocial- trends have a great impact on the success of waffle time because it answers the need of its consumers There is a positive impact on the part of waffle time business to continue their way on achieving their goals +n the other hand, the more foreign product being patroni!es the lesser the local product become desirable Aconomic- the higher the income will be, the higher the purchasing power of consumers The food cart businesses will surely a choice of entrepreneurs as it gains a higher income because it only need a small amount of capital 6olitical- if the process of assessing all the documents needed become easy, there is a big chance for the entrepreneurs to pursue this kind of business 7
Technological- since there is a new technology being used by the competitorH consumers might catch their attention and eventually try the product +n the contrary, if waffle time tries to use new waffle iron designs like animal shape or cartoon character, this will surely patroni!e by the consumers especially the young ones
BUSINESS ENVIRONMENT
The business environment of Waffle Time consists of many forces close to it, which affect its ability to serve its customers, such as other channel members, suppliers, competitors and publics &t also includes broader demographic, economic, political, legal, technological, ecological, social and cultural forces
3 #actors in the remote environment which will affect the industry areB "AM+72/6%&CB • • •
i!e of the family &ncome level 8ifestyles
AC+@+M&CB • • •
&nflation rate "eflation rate .nemployment rate
+C&/8B
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• • • •
0uying habits 2eligion and beliefs 6opulation growth rate ocial responsibility
6+8&T&C/8, 7+VA2@MA@T/8, /@" 8A7/8B • •
Ta1 8aws 6atent 8aws
TAC%@+8+7&C/8B • •
@ew e*uipment Technological advancements
C.8T.2/8B •
/ttitude towards price
9 What will that effect be and when will it be felt? Changes in e1ternal forces translate into changes in consumer demand for both industrial and consumer products and services A1ternal forces affect the types of products developed, the nature of positioning and market segmentation strategies, the type of services offered, and the choice of businesses to ac*uire or sell &dentifying the demographic forces helps the organi!ation to determine appropriate course of action to better serve the uni*ue needs and preferences of their ideal customers &t will be felt after the segmentation has been created
9
Aconomic factors have a direct impact on the potential attractiveness of various strategies to be performed by the company 8imiting inflation and avoiding deflation helps to keep the economy balanced Moreover, increase in unemployment rate will greatly affects business in the country &t can be an opportunity to provide jobs or it can also be a threat to the sales of the company 6olitical, governmental, and legal factors can represent key opportunities or threats for both small and large organi!ations Changes in patent laws, ta1 rates, etc, can affect firms significantly The increasing global interdependence among economies, markets, governments, and organi!ations makes it imperative that firms consider the possible impact of political variables on the formulation and implementation of competitive strategies &t can also have a major impact on the strategies of small, large, for-profit, and nonprofit organi!ations Many companies have altered or abandoned strategies in the past because of political or governmental actions Technological advancements can dramatically affect organi!ations$ products, services, manufacturing processes, marketing practices, and competitive position, resulting to create new markets, proliferation of new and improved products, change the relative competitive cost positions in an industry, and render e1isting products and services obsolete &t has changed the very nature of opportunities and threats by altering the life cycles of products, increasing the speed of distribution, creating new products and services, erasing limitations of traditional geographic markets, and changing the historical trade-off between production standardi!ation and fle1ibility &t can also reduce or eliminate cost barriers between businesses, create shorter production runs, create 10
shortages in technical skills, and result in changing values and e1pectations of employees and customers < &s the industry profitable now? Ies, the industry is already profitable because food is a basic human need 6eople love to eat foods that are easily available and particularly the ones that are situated in convenient places ; &s it likely to be profitable in the future? Ies, it is likely to be profitable in the future because food cart business does not re*uire huge capital to start-up Moreover, considering its affordability and convenience people will surely patroni!e the business = Critical success factors re*uired being in the industry The critical success factors re*uired to be in the industry are capital, suppliers, promotion, consumers and physical resources such as a location of the business, e*uipment, and the re*uired documents to start-up a business
E Critical success factors to lead the industry ome are the critical success factors re*uired to lead the industry are strong brand image, market shares, customer loyalty, strategic planning, research and development teams, customer-oriented service, promotional strategies, and efficient service and production process
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F 8evel of turbulence within the industry There is moderate level of turbulence within the industry because of inflation rate on the raw materials used for the products
5 #actors that will push the industry towards being an international or global industry or prevent it from becoming international or global The factors that will push the industry towards being an international or global industry areB market share and cost of overall e1penses
POSITIONING
6ositioning is the art of defining how the productGservice should be perceived by customers relative to their perception of the competitors$ products 6ositioning is e1tremely valuable especially when the company is not the market leader because they must establish the benefits of going with their lesser known product or service
/ C/TA7+2I Waffle Time is a micro-enterprise type of business that speciali!es in #ood Cart &ndustry, specifically waffles
0 C8/ 12
&n terms of product *uality, Waffle Time is considered as a high-end enterprise, because of its carb-protein features that gives of a nutritious vibe to its customers
C #A/T.2A /@" 0A@A#&T +ne of Waffle Time$s mission is to continuously re-invent waffle /dopting its mission waffle time is having a fillings of the month, where in the featured certain fillings every month for the delight of their customers
FEATURES • • •
BENEFITS
Carb-protein combination 6rices range from 639:: to 69=:: #ood cart type
• • •
@utritious /ffordable Convenient
" 62&CA The business aims to maintain the products affordability by setting the price range from 39 6hp up to 9: 6hp depending on the flavor 6ricing 8ist avory Cheese "elight /merican %otdog Tuna alad %am and Cheese Canadian 0acon 13
63; 635 69: 69: 69:
7erman Cheese #ranks
69:
weet 6ineapple 6leasure .ltimate .be Mango Magic 0avarian Cream wiss Chocolate 0elgian Chocolate
639 63; 63; 63; 63E 635
"rinks &ced Tea 39 o!D 0ottled Water =:: mlD
63= 63=
PRODUCT POSITIONING
& Customers will know they need our product because •
6eople tend to look for budget wise foods or snacks that are convenient and
•
ready-to-eat Waffle Time$s products are delicious and a carb-protein combination that are
•
perfect for health conscious people The business offers wide variety of flavors of waffles, from sweet to savory
•
fillings The prices of Waffle Time$s products are affordable, ranging from 396hp up to 9:6hp only
&& +ur productG service meet the needs ofB • •
tudents Amployees inside the mall 14
•
Walk-ins and by passers
&&& These customers will benefit from our productG service becauseB •
tudents, because they are most likely to spend small amount of money and tend to look for affordable snacks
•
Amployees inside the mall, because they are already earning their money so they can afford to spend e1tra for snacks they want
•
Walk-ins and by passers, because they are usually the one who were convinced by the advertisement of the business and decided to buy because of its affordability and ready-to-eat snack
&V 6ositioning tatement Waffle Time products are for people who are looking for a delicious, nutritious and budget friendly snacks
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W/##8A T&MA
Waffle Time$s products are high-*uality yet are low-priced type
FEASIBILITY DEVELOPMENT CHECKLIST
/ 8&T 62&CA .nit
-
per piece
Multiple (uantity
-
@one
Volume 6urchase
-
same price per piece
pecial 6ackaging
-
Waffle$s on 0o1
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8imited #unction Version
-
Maja 0lanca #illings J #ruit alad #illings
3 "etermine whether or not you need a new or different name / @ew product or product line •
ince, one of the company$s missions is to continuously re-invent wafflesH there is the need for new products in Waffle Time
0 @ew moduleGedition •
none
C A1isting name is not working •
ince waffle time become popular in the market there is no reason to create or change its name
9 Avaluate whether or not you are in a position to change name We are in no position to change the name of Waffle Time for it is stated in the package inclusions that as franchisee, we are given the privilege to sell Waffle Time products using the Waffle Time trade name and trademark during the duration of the franchise contract The management has the whole rights to change its name or not
UNDERSTANDING THE MARKET
72+WT% 2/TA +# T%A M/2KAT
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•
•
• •
/mong the barangay areas of 0acoor City Cavite, Molino <, as the target market, has the highest number of population with the total of =5,EE< inhabitants Waffle Time segmented their market as followsB o
Male and female students
o
Working single male and female
o
@on-working single male and female
o
Working married male and female
o
@on-workingG stay at home male or female
&n the past, Molino < has =9, ;F: populace as of 9:3: We assume that F=> or ;<,44F of the population will be our potential customers
C.T+MA2 /@" 6+TA@T&/8 C.T+MA2 • • • •
/ge e1 #amily si!e #amily life cycle
-
3: years old up to ;: male and female < members and above households students, working students, working single individuals,
non, working single individuals, working single parent, working married couples without children, working married couples with children, non-workingGstay at home married couples without children, and non-workingGstay at home married
•
couples with children &ncome +ccupation Aducation -
9:,::: below F:> are employees or workers non-professional, professional, under graduate and
•
college graduate @ationality
#ilipinos
• •
-
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0A@A#&T T%A C.T+MA2 /@" 6+TA@T&/8 C.T+MA2 /2A AAK&@7 +ur potential customers seek to find low prices yet nutritious products, the *uality of product or service and the benefits that they can get from the product that will satisfy their needs
&LA +# KAI M/2KAT A7MA@T • •
0y customer type 0y product differentiation
-
middle class and lower class variety of products, price, packaging, order
type, advertisingGpromotion, product features
TI6A +# &@".T2I Waffle Time$s market type is Cyclical, wherein the type of industry that is sensitive to the business cycle
M/2KAT A@&T&V&TI C+T V/2&/T&+@-
for the students being the target market, they are sensitive to
cost variations given that they are still studying and they can work to earn their money #or those customers who are already working and not yet married, they can afford to buy products that are little e1pensive because they already earning their own #or those
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customers that are married and have children, they tend to get very sensitive to price because they are budgeting their daily e1penses A2V&CA 8AVA8
-
most of the target market wants to purchase and get
the products as soon as possible so they can choose waffle time because they will not spend hours to get it #A/T.2A
-
waffle time customers are considered sensitive to
features of the products like being low-priced, protein-carb combination, and accessibility ATA2@/8 #/CT+2
-
the market are directly affected by the changes in
e1ternal factors, thus, making them sensitive to the economic, socialGcultural, politicalGlegal, technological factors 0.IA2 "AC&&+@ 62+CA +# C.T+MA2 -
There are needs arises from the
customers for a delicious and nutritious yet affordable snacks, making Waffle Time a choice for them to purchase, because of its low priced products and its carb-protein features 62&CA AT
-
Waffle Time prices are set depending on its flavorsG
fillings and also on its location T/08A &@".T2I +2 / N0++M /@" 0.T$ &@".T2I - The said industry is stable, with 35 years of operations and most of the #ilipinos recogni!ed the brand of the business Today, it has more than ;:: branches nationwide
SKILLS OF THE FIRM 20
The skills of the firm effectively place limits on what they are capable of accomplishing in different aspects Waffle Time employees and personnel$s are fully e*uipped with necessary knowledge, skill, and e1perience to perform designated task for the venture$s sustainability and success
K&88 @ACA/2I &@ T%A 0.&@A M/2KAT&@7 K&88
-
the firm has the necessary skills and e1perience when
regards to marketing especially on marketing a product, how to promote it and persuade the customers to buy the products 62+".CT&+@ K&88
-
the firm is e*uipped with the needed production skills
The employees make sure to be accurate in their work and maintain the total *uality of the production M/@/7AMA@T K&88
-
the firm has the re*uired skills to run the business
naming planning, decision making, delegation, e1ecution, good communication, risktaker, goal oriented, problem solver, etc #&@/@C&/8 K&88
-
the firm is knowledgeable when it comes to financial
matters They have the knowledge to monitor and control the inflow and outflow of cash in the business 2AA/2C% /@" "AVA8+6MA@T K&88 O
one of the firms mission is to
continuously re-invent waffle &n regards to that, they make sure to develop and create new products that are up to date and will cater the needs and wants of the customers
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K&88 C+M6/2A T+ C+M6AT&T+2 Waffle Time make sure to be the number one waffle provider in the 6hilippines, and to make it possible the company make sure to keep its competitiveness and to be one step ahead on its competitors Waffle Time conducts seminars and training for its employees to fit for the task given to them They also conduct research about their competitors
ASSESSING STRATEGIC CAPABILITIES
0.&@A T2/TA7&C +6T&+@ The business focus on its growth for them to ac*uire larger market shares and make the brand know in the whole country as the firm$s vision is to become the one who serves the best waffles in the world The company$s vision won$t be possible if it cannot penetrate the local market "ifferentiation trategy is a big help for the Waffle Time$s growth &t is time for the venture to focus on the other aspects like product *uality and innovation, service levels and distribution process "ifferentiation strategy aims at producing products and services considered uni*ue industry wide and directed at consumers who are relatively price-insensitive uccessful differentiation can mean greater product fle1ibility, greater compatibility, lower costs, improved service, less maintenance, greater convenience, or more features &t also allows the firm to charge a higher price for its product and to gain customer loyalty because consumers may become strongly attached to the differentiation features
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2elated products for the e1isting market is the best product and market strategy for the firm to pursue because it enables them to develop new products related to current range, add product features and refinements, e1pand the product range, develop a new generation product, and develop new products for the e1isting market
EVALUATING CAPABILITIES V. COMPETITIVE STRENGTHS
0elow shows the perception of the organi!ation$s competitive strength relative to the most significant competitors in the industry P= represents the most competitive and -= the least competitiveQ
C/6/0&8&TI C+M6+@A@T
-=
-;
-<
-9
-3
:
R3
R9
R<
R;
R=
C.8T.2A R= 3 Values and /ttitudes 9 kills and Knowledge < Management of Change ; 2isk-Taking = Management by results
R; R= R= R= R=
E +rgani!ational 8earning T2.CT.2A F +rgani!ational #orm 5 'ob "efinition 4 "emands and &ncentives 3: &nformation power structure 33 &nformal 6ower 39 elf-renewal
R; R; R; R; R; R;
23
62+CA /@" ITAM 3< &nformal decision making 3; "ecision-making system 3= Anvironmental surveillance 3E 6roblemG opportunity anticipation
-; R= R= R= R=
3F 6roblem prioriti!ation
R=
35 &nformation system 34 6lanning system 9: &mplementation system 93 Control system 99 Management technology
R= R= R=
9< Computer application
R=
R=
%.M/@ 2A+.2CA C/6/C&TI R= R= R= R=
9; Top management 9= Middle management 9E upervising staff 9F taff 2A+.2CA
95 #inancial 94 6hysical <: Technologies <3 6roducts <9 Credibility with clients << &nformation
R; R= R; R= R= R=
STRATEGIC CAPABILITIES
8isted below are strategic capabilities the organi!ation possesses &@ "&T2&0.T&+@ 24
• •
Weekly deliveries /de*uate stock levels and efficient channels of distribution on Waffle Time commissary
&@ #&@/@CA • • •
trong cash management /ccess to ade*uate financial resources daily sales report, inventories
&@ %.M/@ 2A+.2CA • • • •
trong recruitment skills and ability to attract key staff Viable and relevant training and orientation program trong and developing company culture 0enefits for workers
&@ &@#+2M/T&+@ ITAM • •
6roviding appropriate, timely and up to date financial and customer information Continual development
&@ M/2KAT&@7 • • • • • •
%igh or low product consistency and *uality Wide product range 0randing, &mage, and 2eputation 6ackaging "esign consultancy and conceptuali!ation for customi!ed marketing staff killed, committed sales force
&@ 62+".CT&+@ • •
#le1ibility in production and lead times %ighly productive labour force
&@ 6.2C%/&@7 25
• •
trong negotiating skills trong supplier relationships
&@ 2AA/2C% J "AVA8+6MA@T • •
Continuous product design and improvement "ifferentiation between products
ORGANIZATIONAL CULTURE
There is a good relationship being created by the top management of Waffle Time &nc as it makes a clear agreement with regards to the business on the part of the franchisee The rules and standards that will be implementing are passing down to the colleagues and salesperson The members maintain the trust to each other When it comes to dealing with stress and risk on the operation of the business, the salesperson reports it immediately to the supervisorGowners so that they will get help from them +rgani!ational culture on an organi!ational basis involves and includes the structure of reporting relationships, management and supervisory styles wherein the ownerGs visit the outlet and talk to the salesperson giving them courage and inspirational messages, company policy to maintain the smooth sailing business operations, work flow and workloads, and personnel practices
2+.T&@A /@" 2&T./8 Waffle Time will be operating through the help of its personnel, on regular business hours from 3:B:: am O 4B:: pm, Mondays to undays Amployee has s
26
designated task given to them to ma1imi!e the production time while maintaining the *uality and customer-oriented service The franchisee will use the business operations system developed by the Waffle Time &nc The business operations system includesB a +utlet operation- product procedures, *uality standards, food safety practices, workplace safety and handling complaints b +utlet accounting- daily sales report and inventories
IM0+8 The business uses the Waffle Time trade name and trademark together with a well-designed and attractively made brand new cart that includes the familiar Waffle Time signage
T+2&A /@" MIT% Waffle Time is an established brand with thousands of satisfied customers / lot of people recommend franchising the company The business received e1cellence awards from different years These includeB )Most 6romising #ilipino #ranchise 9::ED )+utstanding #ilipino #ranchise 9::5, 9::4, 9:3: and 9:39D
8A/"A2%&6 /@" 6+WA2 +.2CA
27
Through the participative style, everyone$s opinions are taken into consideration and there is an open door policy for every member of the business for whatever concern they want to settle
C+@T2+8 MAC%/@&M 6eople in the management provide rewards to the salespersonG crew based on performance results because employee satisfaction is also consider important #or the daily operation, the product are maintain through the good hands of the crew and by following the )#irst in #irst out method where used by most of the food business
+27/@&L/T&+@/8 T2.CT.2A WAFFLE TIME INC
Mark Erwin Arciaga
/ngel 2ynia /tien!a Marketing Manager
8iane /ngela 7abriel #inance Manager
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Ava 8eila 7agap ales Manager
Salesperson
6A2+@@A8
6+&T&+@ 7eneral Manager
'+0 "AC2&6T&+@ •
•
Marketing Manager
•
•
ales Manager
•
•
#inancial Manager
•
•
#ood attendantG Crew
• • •
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hould be responsible for all aspect of the business Will ensure that the personnel and staff would do their jobs properly 6lan and implement marketing activities Monitor how target markets respond to marketing efforts 7oal is to increase profit and retain loyal customers To maintain a positive attitude that promotes team work within the company and favorable image of the business &n charge of budgeting and cost control #ile and organi!e financial documents and supports 7et the customers and serve 2eporting the sales of the business 2esponsible for the sanitation of the stall
STRATEGY DEVELOPMENT
T%A C.T+MA2 The objective of this business is to manufacture and sell *uality and affordable waffles to our potential customers in V-Central Mall Molino, who are commonly the students, children, employees and walk-in shoppers from Molino <, Molino 9, (ueens 2ow Central and (ueens 2ow West They will most likely to buy snacks like waffles and drinks such as &ced Tea, 6ineapple and etc Customer satisfaction will be our sole focus by offering affordable, delicious and healthy waffles that everyone will patroni!e /s the number of busy workers who don$t have enough time to prepare proper snacks the demand for ready-to-eat foods also increases 6eople love to eat especially when there is something new, they would love to taste it as soon as they can #ood stalls are everywhere and the cheaper the price the more the customers would buy Though there are many choices to consider when buying snacks, Waffle Time do its best to best serve their customers by providing delicious, nutritious, very affordable and convenient snack The business strengths areB do not re*uire huge promotion, nutritious and affordable products
PERSONAL AND CORPORATE AIMS
6A2+@/8 /&M
30
• • • •
To create a job for themselves To build and run a growth company To make a better living than working for wages To build a business G job for family members
C+26+2/TA /&M 0.&@A •
To provide nutritious and yet affordable waffles for lower and middle classes
•
To commence with a small range of products with objective of growing into a
•
market leader To be able to position waffle time business in the minds of the consumer as the affordable yet nutritious snack
72+WT% •
To open a new waffle time branch in location that will be owned by the four of us
•
To increase the market shares of the company
T/## • •
0uild a dedicated team of high *uality performers, with emphasis on loyalty +ffer fair pay and conditions for high achievers, with no room for poor performance
C+@A(.A@CA
31
0.&@A •
2emain small with little growth and local orientation
72+WT% • •
8ittle growth due to narrow focus and local orientation Take small, calculated risks to maintain G create conservative growth
COMPETITORS
The checklist below, to know and understand who the competitors are, where the company stand, and what to do about it
The objectives areB •
To have a complete, objective listing of competitors showing e1actly where the
•
business or proposed business stands To have a complete script for the sales and marketing people to use to systematically defeat the competitors advantages, benefits, claims, features, and
•
dirty tactics To have a prioriti!ed list of action items for the business department to help develop undoubtedly the best product in your industry
&@TA@&TI +# C+M6AT&T&+@
32
Threats of @ew Antrants M+"A2/TAD
0argaining 6ower of -uppliers M+"A2/TAD
&ntensity of 2ivalry among A1isting Competitors %&7%D
0argaining 6ower of 0uyers 8+WD
Pressure ro! Su"s#i#u#e Pro$uc#s %&'()
&@TA@&TI +# 2&V/82I /M+@7 A&T&@7 C+M6AT&T+2 %&7%D O where there is one direct competitor near the waffle time which is the #amous 0elgian Waffles but this competitor has a higher price range T%2A/T +# @AW A@T2/@T M+"A2/TAD O This is easy for new players to enter especially if they consider the e1penditure and small amount of capital re*uirements of franchising food carts /s times goes by, many businesses related to waffle will start to sprout like mushrooms and they have their new ideas to captivate their market 6eople are always looking forward to what is new and change their preferences for taste and for the value of their money 0/27/&@&@7 6+WA2 +# 0.IA2 8+WD O Customers can no longer demand to drive down the prices ince there are a few substitutes available, it influences the customer not to switch
33
0/27/&@&@7 6+WA2 +# .668&A2 M+"A2/TAD O most of their raw materials for their production are possible for price increase that$s why suppliers may affect the availability of their raw materials 62A.2A #2+M .0T&T.TA 62+".CT 8+WD O Customers may choose Churros City for their substitute to waffle since its price is not far from the price of Waffle Time and also they are both pastry made snack
PRODUCT IDEA RATING DEVICE
6roduct uccess 2e*uirement s
/D
0D
2ating
2elati ve weight
Company Competence
/ 1 0D
level ::
Company personality and goodwill
:9:
Marketing
:9:
2esearch and "evelopment
: 3
: 9
: <
: ;
: =
: E
: F
: 5
: 4
3 :
:35
x
x
:9:
:9 :3E
x
6ersonnel
:3=
x
:3<=
#inance
:3:
x
::4
6roduction
::=
x
::;=
8ocation and #acilities
::=
x
34
::=
6urchasing and upplies
::=
3::
TOTAL
::;=
x
S/10 0.91
2ating scaleB ::: - :;: poor, :;3 - :F= fair, :FE - 3:: good 6resent minimum acceptance rateB :F: The first column lists factors re*uired for a successful launch of the product to the marketplace The ne1t column shows Nweighting factors$ which management may apply to various issues Thus management believes marketing competence will be very important :9:D, and purchasing and supplies competence will be of minor importance The ne1t task is to rate the organi!ation$s degree of competence on each factor on a scale from :: to 3: The final step is to multiply the relative importance of the success re*uirements by the corresponding levels of organi!ational competence to obtain a single overall rating of the organi!ation$s ability to carry this product successfully to the market place
GOAL SETTING
/2A/
#inance
MA/.2A
T/@"/2"- T/27AT- 7+/8
6rofitability
;:> profit margin
2eturn of &nvestment
3=> of monthly profit
Market share
3:> annual market share
+verhead A1penses
8ess than 9:> of sales
/dvertising A1penses
5> of sales
35
ales
Amployee relations Customer relationsG goodwill
ales revenue
3=:,::: 6hp per month
.nits old
<:: units sold
@ew customers
9: per month
8ost customers
8ess than 3: per month
/bsenteeism
@o more than twice a week
"egree of satisfaction
Lero complaint
NEW PRODUCT DEVELOPMENT
YES
3 %as the product been in developing for a year?
Y
9 "oes your company currently make a similar product?
Y
< "oes your company currently sell to a related customer market?
Y
; &s the 2 J " at least one third of the product budgeted?
Y
NO
= Will the product be test marketed for at least E months?
N
E Will the advertising budget be at least => of anticipated sales?
Y
F Will a recogni!ed brand name be on the product?
Y
5 "oes the person in charge have a private secretary?
N
4 Would the company take a loss for the first year?
N
3: "oes the company need the product more than it wants it?
Y
33 %ave < samples of /dvertising copy been develop?
N
39 &s the product really new, as opposed to improved?
Y
3< Can the decision to buy it be made only one person?
Y
3; &s the product made in fewer than = versions?
Y
3= "oes the development team have a working code name?
Y
3E Will the product need service and repair?
N
3F Will the CA+ see the product leader without an appointment?
Y
35 "id the project leader make a go of the last two projects?
Y
34 Will the product be on the market for more 35 years?
Y
9: Would the project leader *uit and take the item with him if the
Y
36
company refused to back it?
coring IA answers to 33 or more, the idea should succeed IA answers between 5 - 3:, the idea is borderline IA answers less than 5 times, look into a chicken shop IA answers less than E times, you couldn$t run a chicken shop There is a need for a new product development for Waffle Time 6roducts as per the results are indicating
SWOT a! TOWS ANALYSIS
T2A@7T%
WA/K@AA
maintaining these strengthsD
overcoming these weaknessesD
•
•
More variants to choose from /ffordability in terms on the price of waffles 37
•
•
other products not being patroni!e limited management control
•
•
+66+2T.@&T&A taking advantage of these opportunitiesD •
•
•
@ew market to penetrate "iversify into related products
0rand recognition 7ood competitive skills
SO
WO
1. Market "evelopment 3,+3D ". 6roduct innovation 3,+9D #. 6romotional strategies <,+
1. Minimi!e the production of the less patroni!ed products W3,+3,+;D ". 2e-develop less patroni!ed productsW3,+9D
6romote new products /dopt @ew Technology
T%2A/T
ST
WT
overcoming these threatsD •
•
•
1. 8evel-up competitive 1. Cooperation with the strategies <,T3D company owner 7rowing competitive ". %ave several suppliers W3,W9,T3D pressure for raw materials 3,T9D ". &ntensive advertising and promotional strategies &nflation on other raw #. .p to date market research 3,9,+
Changing customer needs and preference
3 0.&@A 72+WT% /@" 6A2#+2M/@CA #or the growth of the business, we will continue to develop waffles that will surely delight the customers Waffle time shall concentrate on its promotion #lyers and posters shall be made available for viewing to attract more people coming in the mall 6romotion will decrease in =:> for the succeeding years because we will focus more on the promotion of our new varieties of flavors 38
&n line with our never ending drive to promote our customer with the highest possible *uality products, regular and periodic outlet *uality compliance audits are conducted by well-trained waffle time supervisors To know whether there is a market opportunity, customer suggestions are being considered We will use different strategies like product development, market development, and market penetration for us to achieve our business objectives
9 C.T+MA2 A2V&CA We will continue to be customer-oriented and serve the uni*ue needs and preference or our ideal customers Then, we will make it our priority to satisfy the needs of our clients with our wide product variety and its uni*ue features 8astly, we will make sure that their time will be our priority
< M/@/7AMA@T &@#+2M/T&+@ ITAM We will make sure that our management information system$s purpose is to improve the performance of the enterprise by improving the *uality of its managerial decisions We will gather data about marketing, finance, production, and personnel matters internally, and social, cultural, demographic, environmental, economic, political, governmental, legal, technological, and competitive factors e1ternally The monitoring of internal and e1ternal issues and trends, identifying competitive threats, and assisting in
39
the implementation, evaluation, and control of strategies will be given a needed attention
; #&@/@C&/8 6A2#+2M/@CA The company$s financial objectives will be to accelerate comparable store sales growth, to continue to increase the company$s profitability levels as a percentage of sales to a level of => monthly, to effectively use e1cess cash flow through a combination of strategic growth opportunities and stock buybacks, to grow earnings per share while increasing return on gross investment A1penses that shall be incurred and the operating activities are purchase of the raw material, e*uipment$s, store supplies, maintenance, rent space and salaries of the employees
= T/## "AVA8+6MA@T #or the development of the staffs there should be training and seminars There will be a staff suggestions every month for whatever they may think regarding to the progress of the business
E 2A8/T&+@%&6 W&T% .668&A2 40
To improve relation with our suppliers we will make sure to pay them at the right time and be there loyal customer so they give back a good transaction with the supplies needed
F 0.&@A T2A@7T% The three strengths are the strong brand image and good reputation, proven management and affordability
MARKETING
AVA@ 6$ +# M/2KAT&@7 0y using these seven 6$s O 62+".CT, 62&CA, 68/CA, 62+M+T&+@, 6A+68A, 62+CA, 6%I&C/8 AV&"A@CA, countless different marketing strategies can be formulated to gain sales, consumer interest, market share and market acceptance for new products
62+".CT Waffle Time continuous effort to research and development efforts aims to upgrade and to improve both the products and the waffle business /V+2IB
62&CAB
Cheese "elight
3;::
/merican %otdog
35:: 41
Canadian 0acon
9:::
7erman Cheese #ranks
9:::
%am J Cheese
9:::
Tuna alad
9:::
WAATB 6ineapple 6leasure
39::
0avarian Cream
3;::
Mango Magic
3;::
.ltimate .be
3;::
wiss chocolate
3E::
0elgian Chocolate
35::
"2&@K 0ottled Water
3=::
@estea
3=::
62&CA Waffle Time makes sure that their price list matches their customer$s capacity to pay The savory waffles$ prices range from 3;6hp to 9:6hp, while the sweet waffles$ prices range from only 396hp to 356hp The products$ affordability is one of the top reasons customers patroni!e Waffle Time
42
68/CA Waffle Time chose the location at V-Central Mall, Molino <, City of 0acoor, drawing the targeted market to the residents of Molino < /ccording to 6hilippine tandard 7eographic Code 67CD as of May 3, 9:3:, the population of Molino < reaches =9,;F: making them the largest population in 0acoor #ocussing on the number of populace of the said barangay, it is a great opportunity for Waffle Time to penetrate the said market and gain new customers
62+M+T&+@ Waffle Time may be small but it still can compete with other small enterprise in town &n order to maintain its market share and be the best that sells waffles they continue to level-up their competitiveness 0eing situated inside the mall and being seen by thousands of people every day helps to promote the business especially to new market They also focus on maintaining the aesthetic value of the cart, including the familiar Waffle Time signage, making it attractive to customers They also use flyers to promote their products and the business as well 6A+68A The business does not re*uire huge space and multiple crews To be able to provide their customers with the highest possible *uality of products and service, Waffle Time conducts initial training for their personnel for free
43
62+CA Waffle Time$s operations system include furniture, e*uipment and tools, procedures, products, *uality standards, food safety practices, workplace safety and handling customer complaints The business also conduct regular and periodic outlet *uality compliance audits by well-trained Waffle Time supervisors, and determine the specific needs and address problems that may arise from day-to-day operations
6%I&C/8 AV&"A@CA Waffle Time promise to continue to deliver delicious and nutritious yet affordable priced waffles for every customers who craves for them They also have established relationships with reputable suppliers for the materials they need to provide *uality products to their customers
AVA@ TA6 M/2KAT A7MA@T/T&+@ 3 0road product marketB 2esidents of Molino <, 0acoor City 9 6otential customer$s needsB • • • • •
*uick snack at affordable price convenient location to eat nutritious yet low-priced foods affordable and delicious snacks wide range product line
< ubmarketsB •
students 44
• • • • • • • •
working students working single individuals non-working single individuals working single parent working married couples without children working married couples with children non-workingGstay at home married couples without children non-workingGstay at home married couples with children
; "etermining dimensionsB • • • • • •
male female working non-working single married
= @ick namesB
62+".CT M/2KAT
@&CK @/MA
tudents
yippies
working students
wooppies
working single individuals
single lads
non-working single individuals
slackers
working single parent
tough lads
working married couples without children
love birds
working married couples with children
team mates
non-workingGstay at home married couples without children
slouchers
non-workingGstay at home married couples with children
super slackers
E AvaluationB
45
tudents O they tend to seek a cheaper price for the foods or snacks they will buy because they still don$t earn the money that they have Working students O customers under this category tend to save their salary for their school e1penses so they seek for products that are cost-friendly Working single individuals O they tend to buy anything that they desired without considering the price, including foods that they crave for @on-working single individuals O these customers are either being financially supported by their parents or still looking for a job They usually seek for foods that are budget friendly for them to save money for important things Working single parents O in this category, the parent$s focus is solely on their children Their buying behaviour focuses the needs and wants of their kids &n result to that, they tend to seek delicious and nutritious yet still affordable snacks for them Working married couples without children O these customers seek for affordable and delicious snacks with wide range of product lines They are not much of a price conscious customer Working married couples with children O they based their buying behaviour to their children &n result, they tend to seek nutritious and delicious yet affordable products @on-workingGstay at home married couples without children O in this state, it$s either they are still looking for work or they still depends on the financial assistance from their parents /s a result, they are looking for products that are delicious yet low-priced
46
@on-workingGstay at home married couples with children O these customers are always looking for low-priced products since they don$t have a salary to depend on for their e1penses F Astimated si!e of each product market segmentB Total population Molino
AT&M/TA" @+
>
3:,;4;
9:
working students
=,9;F
3:
working single individuals
F,5F:=
3=
non-working single individuals
9,E9<=
=
working single parent
F,5F:=
3=
=9;F
3:
3:,;4;
9:
9,:455
;
=9;F
3
working married couples without children working married couples with children non-workingGstay at home married couples without children non-workingGstay at home married couples with children T+T/8B
=9,;F:
INNOVATION AND THE ORGANIZATION
The identified highest scores points to the areas where the business is strongest in managing innovation performance The low scores suggest weaknesses
S$%&'( ) a'%** +
3 We have a good track record
A'%* *
N*,$%a (
D-a'%* *
S$%&'()
#
"
1
0
;
of innovation by 47
D-a'%* *
N& O/--&
comparison with our competitors and industry 9 +ur management style does not impede the introduction and development of new
;
products or processes < &n this organisation, the forces which favour the preservation
<
of the status *uo are balanced by enthusiasm ; &t is generally accepted in the organisation that there is
<
outstanding creative talent in its ranks = There are influential people in the organisation who support
<
new ideas entirely on their merits E The management control over
<
activities is not an inhibiting 48
factor for progress F There are efficient mechanisms for the flow of information necessary for
;
managers to carry out their jobs 5 The organisation is attempting to stimulate creative thinking
;
through its training programs 4 Antrepreneurship is encouraged 3: There is a positive attitude and no defeatism where new
;
;
ideas are concerned
T2+@78I /72AA
/72AA
E
;
@A.T2/8
"&/72AA
:
:
T2+@78I
@+
"&/72AA
+6&@&+@ ?
:
:
DIFFERENTIATION
The perception of the products created by the differentiation can be such that the uni*ue features not only insulate Waffle Time$s products from a competitive challenge but also create such a brand loyalty that a level of price insensitivity develops in their customers enabling higher margins to be charged 49
62+".CT +##A2
0AVA2 /7A
62&CA
Cheese "elight,
@estea and 0ottled Water
2anges from 39-9: 6hp
/merican %otdog, Canadian 0acon, 7erman Cheese #ranks, %am Cheese, Wa(* T-2*
J
Tuna alad, 6ineapple 6leasure, 0avarian Cream, Mango Magic, .ltimate .be, wiss chocolate, 0elgian Chocolate
50
6/CK/ 7&@7
+2"A2 TI6A
/"VA2 T&&@7 J 62+M+ T&+@
.ses paper bags and bo1es
Can be a single order or bulk orders
.ses flyers, tarpaulin , and the internet
62+". CT #A/T.2 A &t is a Carbprotein combinati on, and sweets fillings
Fa2&, B*('-a Wa(*
C3,%%& 4I !-%*5$6
6lain, chocolate, peanut butter, cheddar cheese, strawberry, creamchees e, blueberry, ha!elnut, ham J cheddar, banana peanut butter,bana na chocolate, chocolate peanut butter, banana ha!elnut, ham J creamchees e, blueberry creamchees e, strawberry creamchees e, tuna J garlic ranch
&ced coffee, iced milk tea, iced choco, coffee, strong coffee, hot choco
2anges from <=-F= 6hp
.ses paper bags and bo1es
Can be single or bulk orders
.ses flyers, tarpaulin , and the internet
&t is a carb and sweets combinati on
Chocolate, Cinnamon, Mango Cinnamon, Mocha, Cheese, Churros wG Chocolate
%ot choco, cocacola
2anges from 6hp <==: 6hp
.ses paper bags and bo1es
Can be single or bulk orders
.ses flyers, tarpaulin , and the internet
&t is a frieddough pastrypredomin atly chou1basedco
51
"ip, Churros wG trawberry "ip, Churros wG "ark Chocolate "ip, Churros wG White Chocolate "ip
mbinatio n
STRATEGIC OPPORTUNITIES
+66+2T.@&T&A T+ 6.2.A -
-
-
-
@ew market to penetrate &nnovate new products 6romote new products /dopt new technologies &mprove the business operations
2&K T+ T/KA -
-
-
-
Antering new market /dvertising new products Conducting research J development &nvesting on new technologies /dopt and effective business operations
2&K W&88&@7 T+ T/KA -
-
-
-
-
52
2esearching needed information about the market to penetrate /llocating budget for new technologies &mplementing better production J operation process /dvertising new products to the market /llocating budget for innovating products
6AC&/8&/T&+@
-
0eing widely known across the country, Waffle Time
needs to break down its personnel and assign them to the production and operation process for them to create an effective and efficient business operation &@TA72/T&+@
-
This strategy gives opportunity to the business to
improve their organi!ational performance by facilitating the continues alignment of business strategies within the ever changing business environment &t also e1pands the business operation by ac*uiring its supply chain and distribution channel "&VA2&#&C/T&+@
-
This strategy, although risky, can help the innovation
of the business Waffle Time can e1pand its operations by establishing a Cafe store that uses waffles as the main products
T2/TA7&C +66+2T.@&T&A /""&T&VA
-
Waffle Time e1ploits already e1isting resources, which is waffle,
without changing the character of the business +ne of the opportunities for the business is to promote their products to the new market, which is V Central Mall Molino
STRATEGIC PLANNING
/662+/C%A T+ T2/TA7&C 68/@@&@7 Waffle Time uses 62+/CT&VA approach to strategic planning They design a desired future for the business and then they invent ways to create the future state The business can also actively control the outcomes, by trying to get ahead of events outside of their control 53
KAI 72+WT% T2/TA7&A A6/@&+@ +# V+8.MA-
Waffle Time focuses on increasing sales to a single
new market or in e1isting markets They invest their efforts in 2esearch and "evelopment of new products, as well as promoting their products to target markets They also invest in adopting new technologies and improving the business process for them to achieve a high level of efficiency in their overall operations
0.&@A W/2#/2A T2/TA7&A 62+".CT AM6%/&
-
or be productGservice orientate is one of the strategies
that we should adapt for the business to make more waffle according to its standard "+M&@/@CA
-
or dominate your corporate niche, Waffle Time
continuous to strengthen its niche in the franchise sector, establishing strong ties in the industry and becoming the leading waffle brand and one of the most awarded franchise concepts in the country #8A&0&8&TIG+66+2T.@&M
-
change direction and moveGadapt *uickly &t
should be adapted because there are lots of opportunities that the business can consider #le1ibility enables both individual and business needs to be met through making changes to the time whenD, location whereD, and manner howD in which an employee works #le1ibility should be mutually beneficial to both the employer and employee and result in superior outcomes
54
A##&C&A@T &@@+V/T&+@ -
optimi!e
new products,
services
and
methods
Whatever new product is being innovated it should be effective as possible or will catch more customer$s preference 8A/"&@7
-
&t is very important because top management directly deal
with the workers and staff who produce goods They communicate the organi!ation$s vision and yearly direction Averyone needs to communicate and influence their peers and workers to engage in correct work behaviour such as owning up to any customer in*uiry or complaint rather than passing the buck to )the person in charge
FUNCTIONAL STRATEGIES
Within each business unit more detailed planning will need to occur The major functional departments such asB /CC+.@T&@7
-
The outlet accounting should have daily sales report,
inventories, 6 J 8 statement format There should be a => monthly service fee from the outlets monthly gross sales #&@/@CA
-
/ll the e1penditures must be paid and achieve such as the
cost of site improvements or renovations, site security deposits, rentals and other advance payments, cost of businessGgovernment permits and licenses, training allowance or salary of prospective crews, and utilities- electricityGpower, water, etc %.M/@ 2A+.2CA
-
To attain effective and efficient production system,
Waffle Time shall take into consideration to human resources as one of the essential factor that can affect the firm$s business operation To assure the right operation 55
process is done simultaneous with production, the firm will hire *ualified employees and willing to undergo training and development ervice crew will be trained and hired to undertake customer$s assistance M/2KAT&@7
-
Marketing collaterals, which include one 3D specially
designed streamer and bundles of flyers, are provided for free to the franchisee before opening These specially designed collaterals bring awareness and help promote business in new areas "esign consultancy J conceptuali!ation for customi!ed marketing stuff are for free %owever, additional and customi!ed marketing stuff are for franchisee$s account 6.2C%/&@7
-
To control the *uality of the product, all supplies are
purchased from the nearest Waffle Time commissary These supplies include all raw materials used in product preparation and all packaging materials These supplies are for pick up /8A
-
ales are assumed to increase at the rate of 3:> per annum
due to growing population and migration of people from other places
STRATEGIC CONTROL
/ control process should be used to evaluate the results of the action plan and to enable corrective action to be taken if necessary
6AC&#&C 7+/8
56
• •
• •
To continuously re-invent at least two waffles every end of the month To achieve high-level of efficiency by improving the production and operation process by the current month To increase sales by => on the two following consecutive months To establish strong brand image to the new market on the end of the first month by means of advertising
MA/.2A 6A2#+2M/@CA Customers tend to seek more affordable and nutritious snacks and it$s proven that Waffle Time meets these needs &n line with this, many food carts are being established and Waffle Time has become the market leader since it is established Their branches are continuously increasing in numbers around the country
AV/8./TA 6A2#+2M/@CA The business gained a lot of awards that truly shows how they perform well and this is because of the management and the loyal customers
C+22ACT&VA /CT&+@ T/KA@ The business should maintain the good relationship from the management down to the staff of the branch handled, all the standards and rules must be strictly followed, there should be a product development, and the products$ features and benefits should be maintained
57
+6A2/T&@7 C+@T2+8 Waffle Time checks its everyday operations and outgoing performance and takes appropriate actions on the problems that arise to keep the smooth sailing day-to-day business operations
T2/TA7&C C+@T2+8 The company takes a strategic control on the strategies whether it is matched to the opportunities that are present in the market
PRICING AND SERVICE STRATEGIES
Most organi!ations have pricing strategies in place to ensure that decision making by their sales staff is consistent The ales department will often be involved in various areas of setting pricing strategies- 6roduct, "istribution, 6ricing
62&C&@7 T2/TA7IB 6ricing strategies may be set to take into account and reflect pricingB 3 2A8/T&VA T+ C+M6AT&T&+@ -
Waffle Time is not minding to compete with its
neighboring waffle vendor to gain the trust of customers by regulating the price, thus it
58
offers a more competitive pricing scheme The enterprise offers a lesser price compared to other retailer 9 2A8/T&VA T+ C+T
-
Waffle Time is has its own manufacturer of raw
materials and the Waffle Time commissary is strategically located near the outlets for prompt and on-time deliveries to cut the supply chain, reduce its transportation costs and to regulate a cheaper price to the customers < .@&#+2M&TI +# 62&CA #+2 "&##A2A@T C.T+MA2pricing list that the customers can choose to ; 8&T 62&CA avory Cheese "elight /merican %otdog Tuna alad %am and Cheese Canadian 0acon 7erman Cheese #ranks
weet 6ineapple 6leasure .ltimate .be Mango Magic 0avarian Cream
59
63 ; 63 5 69 : 69 : 69 : 69 :
63 9 63 ; 63 ; 63 ;
Waffle Time a fi1ed
wiss Chiocolate
63 E 63 5
0elgian Chocolate
"rinks &ced Tea 39 o!D
63 = 63 =
0ottled Water =:: mlD
= 7A+72/6%&C/8 62&C&@7
-
The price of rice is predetermined depending
-
Waffle Time price range for their savory
where the outlet is located E 62+".CT 8&@A 62&C&@7
products are higher, from 3; 6hp to 9: 6hp, than the price range of their sweet products, from 396hp to 356hp only
T2/TA7I +6T&+@ #+2 A2V&CA 2A8/TA" &.A C+M6/2/08A W&T% &@".T2I T/@"/2"
-
Waffle Time
supervisors
do *uality audits and they also determine the specific needs of each outlet and address problems that may arise from day-to-day operations Waffle Time continuous research and development efforts aims to upgrade and to improve both the products and waffle business
60
C/2&@7 /@" 62+M6T C+M68/&@T %/@"8&@7 -
Waffle Time uses the steps
of apologi!e-listen-act, to address the certain complaint of the customer to recover their trust and loyalty to the company
BARRIERS TO ENTRY
0arriers to entry present in the market place &@TA@&TI +# 2&V/82I /M+@7 A&T&@7 C+M6AT&T+2 %&7%D O where there is one direct competitor near the waffle time which is the #amous 0elgian Waffles but this competitor has a higher price range T%2A/T +# @AW A@T2/@T M+"A2/TAD O This is easy for new players to enter especially if they consider the e1penditure and small amount of capital re*uirements of franchising food carts /s times goes by, many businesses related to waffle will start to sprout like mushrooms and they have their new ideas to captivate their market 6eople are always looking forward to what is new and change their preferences for taste and for the value of their money 0/27/&@&@7 6+WA2 +# 0.IA2 8+WD O Customers can no longer demand to drive down the prices ince there are a few substitutes available, it influences the customer not to switch 0/27/&@&@7 6+WA2 +# .668&A2 M+"A2/TAD O most of their raw materials for their production are possible for price increase that$s why suppliers may affect the availability of their raw materials
61
62A.2A #2+M .0T&T.TA 62+".CT 8+WD O Customers may choose Churros City for their substitute to waffle since its price is not far from the price of Waffle Time and also they are both pastry made snack
GAP ANALYSIS
7ap analysis, while highlighting deficiencies in the organisation, will also reveal many competitive strengths and opportunities "A&2A" 6A2#+2M/@CA -
-
/CT./8 6A2#+2M/@CA
erve the best waffles worldwide Continuously innovate new products /dopt new technologies &mprove the business operations Affectively promotes new products to customers
-
-
-
+nly penetrated the 6hilippine market low development on new products till uses the same tools and e*uipment .ses the usual business operation developed by the franchisors +nly uses flyers, tarpaulin and internet to promote the business
What does the organisation need to do to sell itself as a responsible provider of its products or services to fill the role in the market place in which it perceives itself? •
&n order to get the customer$s attention, waffle time should offer another sets of fillings for their sweets and savoury category While offering another set of fillings, the management must assure the *uality of every waffle that they serve /nd also, in price setting they need to consider the buying capability of the customers /side from serving *uality yet affordable waffles, the management always assure
62
that the service of every employee are very good plus the fact that they serve ontime without having any complaints from the customers
7ap analysis, while highlighting deficiencies in the organisation, will also reveal many competitive strengths and opportunities
RISK MANAGEMENT
0usiness risk is the threat that will adversely affect the organisations ability to achieve its business objectives and e1ecute its strategies successfully &t arises as much from the likelihood that something good will not happen as it does from the threat that something bad will happen 0usiness risks are pervasive and inter-related and the action or interaction of individuals within the organisation may have a profound influence on the organisations risk profile
6.2A 2&K • • •
6AC.8/T&VA 2&K
@atural disaster Terrorism bankruptcy
• •
&ncreasing number of competitors &nflation rate
#+.2 KAI .CCA #/CT+2 Aach organisation has its own uni*ue moving target of constantly changing business risks and should consider its objectives, strategies, culture, values and
63
financial strength when designing its business risk management process 0elow are the four key success factors for successful implementation of an integrated approach to managing risk
3 AAC.T&VA 8A/"A2%&6 &n order to become successful over the management risk, waffle time assures that they manage and guide their employees /nd also, they oversee the organi!ational goals, strategic planning development and overall decision making
9 +W@A2%&6 The management should installed data gathering or early warning systems that provide information to assess more accurately the impact, likelihood, or timing of risk
< C+MM&TMA@T The commitment and involvement of top management positively contributed to the communication and understanding as well as the e1ecution and integration of risk management
; A@/08&@7 #2/MAW+2K #+2 C+@T&@.+. 62+CA &M62+VAMA@T
64
Aach organisation has its own uni*ue moving target of constantly changing business risks and should consider its objectives, strategies, culture, values and financial strength when designing its business risk management process
2&K •
/CT&+@ ervice crew misconduct
•
•
•
#ranchisor won$t allow the franchisee to renew the contract
•
•
•
+ut of stock raw materials
•
6rovide *ualified service crew if necessary, the *ualified crew must be an ac*uaintance or close relative of the franchisee .ndergo orientation about the rules and regulations Communicate well to management %aving a secured contract
the
Communicate with the franchisor before the supplies run out
FEASIBILITY OF A NEW PRODUCT
+66+2T.@&T&A
T%2A/T
&ncreased appeal of your product • • •
"ecreased appeal of products
Can provide affordable waffles Market leadership Continuous product innovation
competitors better method of convincing
A1ploit competitors$ shortcomings • •
@ew strategies from competitors
+pportunities for increased market share 8ess number of competitors
65
Can adapt to new technology
ANALYSIS AREAS AND 7UESTIONS 1. %ow do buyers consumers and industrialD currently go about buying e1isting
products or services? "escribe the main types of behaviour patterns and attitudes aD @umber of stores shopped or industrial sources considered •
2#C Molino, V-Central, M Molino and tar mall 6rima
bD "egree of overt information seeking There is a high degree of overt information seeking cD "egree of brand awareness and loyalty •
There is a high degree of brand awareness and loyalty
dD 8ocation of product category decision •
V Central Mall Molino
eD 8ocation of brand decision •
Customer$s decision in buying a product depends on the availability of the brand #or e1ample, if Waffle Time is the only brand that is available on that area, then the customers will choose to buy on that store rather than going out on that mall
fD ources of product information and current awareness and knowledge levels •
ources of Waffle Time products can be seen through internet or online as well as on the location itself
gD Who makes the purchase decision? •
Ioung and /dult both male and female 66
hD Who influences the decision maker? •
The staffs of the store influence the decision maker and also the customer$s choice itself
iD &ndividual or group decision •
&ndividual decision
jD "uration of the decision process repeat, infre*uent, or new purchase decisionD •
Customers may repeat the purchase since its affordable for e1ample the employee inside the V Central
kD 0uyer$s interest, personal involvement or e1citement regarding the purchase •
There is a buyer$s interest regarding the purchase and e1citement when it comes to trying the different fillings
lD 2isk or uncertainty of negative purchase outcome - high, medium or low •
There is a low risk or uncertainty of negative purchase outcome, this may because of serving the waffle by just reheating it
mD #unctional v psychological considerations •
The customer uses psychological consideration because they are being practical in terms buying the product
nD Time of consumption •
#or the time consumption, the customer can wait for at least = minutes and better eat this as soon as it is hot for them to satisfy its great taste
67
9 Can the market be meaningfully segmented or broken into several homogeneous groups with respect to )what they want and )how they buy? Criteria aD /ge
-
bD #amily life cycle -
39 to ;= years old students, working students, working single individuals, non,
working single individuals, working single parent, working married couples without children, working married couples with children, non-workingGstay at home married couples without children, and non-workingGstay at home married couples with children cD 7eographic location -
residence of Molino <
dD %eavy v light users -
8ight user
eD @ature of the buying process
-
ince the customers need something to eat
especially an affordable and convenient snack, Waffle Time becomes a choice for them fD 6roduct usage
-
To satisfy the customers who are in hurry and looking for
delicious yet affordable snack
NATURE OF COMPETITION
T/7A +# 62+".CT 8&#A CIC8A The purpose of this section is to evaluate the present and future structure of competition The key is to understand how the buyer evaluates products or services relative to his or her needs 68
/@/8I& /2A/ /@" (.AT&+@ 3D What is the present and future structure of competition? a @umber of competitors B
3 v 9
b Market shares
;: > of the market share
B
c Marketing resources and skills
#/M+. 0A87&/@ W/##8A "&2ACT C+M6AT&T+2D 62+".CT
6rice
6lain Chocolate 6eanut 0utter Cheddar Cheese trawberry Creamcheese 0lueberry %a!elnut %am J Cheddar 0anana 6eanut 0utter 0anana Chocolate Chocolate 6eanut 0utter 0anana %a!elnut %am J Creamcheese 0lueberry Creamcheese trawberry Creamcheese
6<: 6<= 6<= 6<= 6;= 6;= 6;= 6;= 6;= 6;= 6;= 6;= 6== 6== 6== 6==
@ew #lavors 0utter Caramel Choco 0anana 6eanut 0utter 0anana Choco Caramel Tuna
6;= 6== 6== 6;= 69
"rinks Malaysian Coffee Malaysian trong Coffee Malaysian %ot Choco
6;= 6;= 6;=
62&CA #amous 0elgian Waffle price list are also depends on the flavors of their offered waffles, its prices range from 6<: to 6== They position to the minds of the customers that their waffles is fresh and delicious
68/CA #amous 0elgian Waffle is located at ground level of V-Central Mall Molino, their target customers is also the people around Molino < and near barangays
62+M+T&+@ #amous 0elgian Waffle promotes their products using flyers and they also active on social media that can have a big impact to their business image
6A+68A They don$t need a large number of employees because they business can operate by one or two person only They also have proper trainings J seminars to their employees
70
62+CA #amous 0elgian Waffle must use standard process of creating their products and they also have complete safety e*uipment$s in order to ensure the safety of both employees and customers
6%I&C/8 AV&"A@CA #amous 0elgian Waffles was continued the strong relationship between their suppliers because they want to have a strong basis for their business They continuously serve a delicious and fresh waffle to their customer
C%.22+ C&TI &@"&2ACT C+M6AT&T+2D 62+".CT
6rice
Chocolate Cinnamon Mango Cinnamon Mocha Cheese Churros wG Chocolate "ip Churros wG trawberry "ip Churros wG "ark Chocolate "ip Churros wG White Chocolate "ip
6<= 6<= 6<= 6<= 6<= 6;: 6;: 6;: 6;:
Churros wG Toppings Mini nips
6=:
71
Mini mallows Crushed cookies Crushed peanuts Choco sprinkles 2ainbow sprinkles White choco droplets Chocolate droplets
"rinks
mall O 6;: 8arge O 6=:
&ce 0lend "ouble dutch Choco truffles Mocha Cappuccino White chocolate Micafe
69:
< in 3 coffee %ot choco mi1 Coca-Cola 62&CA
&n can
69=
Churros City price list depends on the flavours and variants of their products The Churros prices range from 6<= to 6=:, they matches their priced based on their target customers which is on the middle J high class type of people The products are e1pensive but they believe that their customers satisfy because their products are all delicious and high *uality
68/CA
72
Churros City is located at 9 nd level of V-Central Mall Molino their primary target customers are the people inside the Molino < and the near barangays in the area &t is perfect place for that type of business because there are only limited competitors inside the mall unlike to the other malls like M Malls J 2obinsons Malls
62+M+T&+@ Churros City is new in the market but they make ways to become popular on the market especially in their industry They promote their stores in different ways, they conduct an special treatment if they have new stores open, another one is promoting using flyers and last is through social media and internet- the most powerful and helpful promotion strategy today
6A+68A ince the Churros City is also part of food cart industry they don$t need a large number of employeesG staff and they conduct trainings J seminars for their employees
62+CA Churros City product must maintain the cleanliness, safe and standard procedures of doing their products The employees wear proper e*uipment$s and tools in order to avoid problems that can cause damage in their business /nd also the
73
managersG supervisors in every cart should check the employees as well as the sales per day in order to monitor the operations
6%I&C/8 AV&"A@CA Churros City would continue to operate and deliver a high *uality and best taste of product They maintain good relationships to their suppliers in order to maintain delivering a *uality and best taste of Churros to their customers
9D What are the current marketing programs of established competitors? Why are they successful or unsuccessful? •
#amous 0elgian Waffle direct competitorD has its #acebook and &nstagram where they post different products as well as their branches to be able to catch the attention of the viewers They make creative photos including their waffle depends on the occasion like for @ational %eroes "ay They also have activity for their customers which are posting their own pictures on &nstagram account
•
together with the product Churros City indirect competitorD do also have their Web site specially #acebook where they show every step they make such as how they come up to different places and by the help of their top management which is the Miguelitos &nternational Corporation, they become known by the customers
74
•
Ies, there is an opportunity for another competitor but depends on the business if they will become successful or not
;D What are the anticipated retaliatory moves of competitors? Can they neutrali!e different marketing programs you might develop? •
The competitor might give false information about our product that can affect the buying decision of customers /nother is the possibility for imitating our product and sells it in lower prices They can neutrali!e different marketing programs we might develop because there are lots of ways to do it but still the result depends on the customer$s choice
/@/8I& /2A/ /@" (.AT&+@ 3D &n what stage of the life cycle is the product category? •
The product category is on the maturity stage of the product life cycle
a What is the chronological age of the product category? •
0oth young and adult are favorable with the product
b What is the state of the consumers$ knowledge of the product category? •
The more complete knowledge about the waffle$s flavours and taste, the customer will be favorable
75
9D What market characteristics support your stage of life cycle evaluation? •
ince the product the Waffle Time sells is in food category, the business will not fall down because food is a necessity and it is already built for 35 years in the industry
TOP "0 7UESTIONS8 ADDRESSING FEASIBILITY ISSUES
3 What type of business do you have? •
The type of our business is food cart
9 What is the purpose of this business? •
&t offers affordable waffles and one of their purposes is to reduce staffing cost
< What is the key message or phrase to describe your business in one sentence? •
)@utritious and "elicious and yet affordable waffles this phrase serves as their position in the minds of their customers
; What is your reason for starting your own business? •
#ood cart industry has now become one of the top choices of budding entrepreneurs &t is lucrative and affordable to franchise the business because of its low capital outlay and #ilipino people have truly cultivated a keen interest in this type of business
= What is your product or service?
76
•
/ wide range of waffles, from desert to gourmet fillings
E Can you list three uni*ue benefits of your product? • • •
&t is nutritious because of its carb-protein combination &t is convenient in terms to its location &t is affordable because it offers low-priced waffles
F "o you have data sheets, brochures, diagrams, sketches, photographs, related press releases or other documentation about your productGservice? •
Ies, Waffle Time distributes flyers and they used also the power of social media in order to promote their products
5 What is the product application? •
We continuously innovating different variants of waffle because the customers cannot satisfied in limited type of variants of waffle
4 What led you to develop your product? •
We develop our product by adding some uni*ue variants of waffles because the competition in our industry is high and continuously
3: &s this product or service used in connection with other products? •
Ies, because waffle time also serve @estea for their drinks
33 8ist the top three objections to buying your productGservice immediately?
77
•
not satisfy with the products wafflesD because they cannot follow proper
•
procedures employees don$t know how to treat customers in a nice way conditions of the location, as well as the image of actual stores
•
39 When will your product be available? •
+ur products is available depends on the place and capability of the stores to offer those products
3< Who is your target audience? •
+ur target audience are working adults, students who have hectic schedules and people who prefer *uick service food options
3; Who is your competition? •
&n our location in V-Central Mall Molino, we will have one direct competitor only which is the #amous 0elgian Waffle and one indirect competitor which is Churros
3= %ow is your product differentiated from that of your competition? •
Waffle Time is different to their competitors because they offer delicious, nutritious and affordable waffles
3E What is the pricing of your product versus your competition? •
The pricing rate of waffle time is lower than to their competitors
78
3F /re you making any special offers? •
Ies, because they focus on innovating of their e1isting products
35 What plans do you have for advertising and promotions? •
Waffle Time is promoting their products using flyers, social media and also sponsoring some seminars
34 %ow will you finance company growth? •
ince waffle time is a food cart business, the franchisees are the one who will finance the stores that they will franchise /nd for the company owned food cart branch, the management can use their assetsGmoney that they earned in order to secure the growth of the company
9: "o you have the management team needed to achieve your goals? •
Ies, waffle time have their own management team that stick together in order to achieve the corporate goals for their business
ANALYSING YOUR COMPETITIVE POSITION
I!-%*5$ C&2/*$-$&%
C&2/*$-$-*
Ma:&% C&2/*$-$&%
I!-5a$&%
Fa2&, B*('-a Wa(*
C3,%%& C-$)
/verage
%igh
Market position 79
7eneral trend in market position 6rofitability low, average, highD #inancial strength low, average, highD 6roduct mi1 broad, narrowD Technological capability strong, weak, averageD Cost outlook favorable, unfavorableD (uality good, satisfactoryD 6roduct development good, satisfactory, minimalD
%igh
%igh
%igh
%igh
%igh
%igh
0road
0road
trong
trong
#avorable
#avorable
7ood
7ood
atisfactory
atisfactory
FINANCIAL RESOURCES OF THE FIRM
/@/8I& /2A/ /@" (.AT&+@ 3 "o we have the funds to effectively support the project? / capital budget has been developed for the purpose of supporting the business The source of financing came from personal money contributed by each partner
80
9 Where are the funds coming from and when will they are available? Waffle Time is a partnership business in which two or more persons share the ownership, where partners have unlimited liability for the debts and obligation of the partnership Aach partner contributes to all aspects of the business, including money, property, labour and skills &n return, each partner shares in the profits and losses of the firm 62+08AM /@" +66+2T.@&T&A %ere we prepare a definite listing of key problems and opportunities identified from the situation analysis which relate to the specific issues or decision *uestions faced by management U Key problem areas U Key opportunities KAI 62+08AM /2A/ • •
• •
•
KAI +66+2T.@&T&A
6roduct spoilage .ne1pected damage of tools and e*uipment$s Amployee misconduct &ncreasing numbers of competitors in selected location 8ow sales on other products
• • • • • • • • •
/ +0'ACT&VA "A#&@A" 3 Target market segments identifiedB 2esidents of Molino <, 0acoor City 81
@ew market to penetrate 6romote new products /dopt new technologies &mprove business operations Astablished brand e*uity #ast market growth Anter new market "iversify into related products &ncreasing customer purchase power
•
Amployees inside the mall Mall shoppers Work Workin ing g adult adults s or studen students ts who who have have hecti hectic c sched schedule ules s and and pref prefer er *uick *uick service food options
9 Volume to be sold /ssumed customers per day
B
<:: customers customers
/ssumed average purchase
B
9: 6hpGbuyer 6hpGbuyer
B
<:: units of waffles
(uantity produced < 6rofit analysis
0 M/2KAT&@7 M&G62+72/M "AC&&+@ The The key to effe effecti ctive ve marke marketin ting g decis decision ion makin making g is to evalu evaluat ate e altern alternat ative ive marketing programs using information from the situation analysis 3 62+".CT "AC&&+@ -
The business aims to develop and upgrade new
waffles that cater the needs and wants of the target customers and potential customers -
Waffle Time position its products byB
Waffle Time$s products are ready-to-eat and convenient Waffle fle Time$s me$s pro product ducts s are are delic elicio ious us and and a carbarb-pr prot otei ein n
combination that are perfect for health conscious people The business offers wide variety of flavors of waffles, from sweet to
savory fillings The prices of Waffle Time$s products are affordable, ranging from
396hp up to 9:6hp only
82
9 "&T2&0.T&+@ "AC&&+@
-
Waffle Ti Time wi will ap approach ea each cu customer mer in in a
way that they would actually come back for more because they would like not only by physical means but also how it would taste Aach personnel will be very accommodating so for the customers to feel that they are an important part of the business < 62+M+T&+@ "AC&&+@ • •
+pening Oflyers and tarpaulin @o massive advertising and promotion effort is needed due to name already established by Waffle Time itself The The group group utili utili!e !es s tech technol nology ogy as publi publicit city y tactic tactic by using using multip multiply ly acco account unt
•
announcing to friends and families to purchase in Waffle Time The budget for the promotion of the business is worth 3,::: 6hp a month
; 62&CA "AC&&+@
-
The prices of Waffle Time$s products are much
lower than its competitors The price variation for waffles depends on its fillings The price range of the products varies from 396hp to 356hp on sweet flavours and 3;6hp to 9:6hp on savoury waffles
83
CONTRIBUTIONS TO TOTAL COST FACTORY OVERHEADS
O$3*% O*%3*a!
&ndirect Materials
MarketingG/dvertisi ng
PRIME COST "irect Materials •
•
2aw Materials 9<,<39 6hp G month 6ackaging 3,3:: 6hp G month
"irect 8abour •
•
;
•
<
&ndirect A1penses
Amployee 3<,=:: 6hp G month
•
•
"irect A1penses •
+ffice supply 3,::: 6hp
.tilities <,4:: 6hp G month
TOTAL PRODUCT COST
9:: 6hp G month TOTAL COST
;
#0"=>1" P3/
2ent 3:,::: 6hp G month 6ackage cost 9=:,::: 6hp G month
<
/dministration •
•
Monthly service fee =>D F,;55 6hp 8icensesG2e gistration E,::: 6hp
•
•
84
"&2ACT M/TA2&/8 2aw MaterialsB
(uantity
.nit 6rice
Monthly
#lour
35: kilos
9=::
;,=::
Aggs
<5: pcs
;=:
3,F3:
ugar
3: kilos
;=::
;=:
alt
= kilos
<:::
3=:
0utter
<: packs
;=::
3,<=:
#resh Milk
3= litters
59::
3,9<:
wiss Choco
; bottles
93:::
5;:
0elgian Choco
; bottles
99:::
55:
6ineapple
; cans
F<::
949
.be
5 kilos
=:::
;::
Mango
5 kilos
39:::
4E:
Tuna
9: cans
<=::
F::
Cheese
;: packs
;=::
3,5::
%am
=E packs
F:::
<,49:
ecurity deposit =:,::: 6hp Ta1es Ta1es <:>D < :>D ;;,495 6hp G monthly
+11= +"> P3/
"&2ACT M/TA2&/8 2aw MaterialsB
(uantity
.nit 6rice
Monthly
#lour
35: kilos
9=::
;,=::
Aggs
<5: pcs
;=:
3,F3:
ugar
3: kilos
;=::
;=:
alt
= kilos
<:::
3=:
0utter
<: packs
;=::
3,<=:
#resh Milk
3= litters
59::
3,9<:
wiss Choco
; bottles
93:::
5;:
0elgian Choco
; bottles
99:::
55:
6ineapple
; cans
F<::
949
.be
5 kilos
=:::
;::
Mango
5 kilos
39:::
4E:
Tuna
9: cans
<=::
F::
Cheese
;: packs
;=::
3,5::
%am
=E packs
F:::
<,49:
%otdog
E kilos
35:::
3,:5:
0acon
3 kilo
6ineapple syrup
=: cans
;:::
9,:::
Mineral bottle
F: pcs
3:::
5;:
T&$a(8
"#=#1"
85
&@"&2ACT M/TA2&/8 (uantity
.nit 6rice
/mount
+ffice upply
3
3,:::
3,:::
6ackaging
3,3:: pcs
3,3::
3,3::
T&$a(8
1=000.00
/"VA2T&&@7 Tarpaulin
9:::: T&$a(8
"00.00
BREAK EVEN ANALYSIS C/8C.8/T&@7 T%A 02A/KAVA@ 6+&@T
&@"&2ACT M/TA2&/8 (uantity
.nit 6rice
/mount
+ffice upply
3
3,:::
3,:::
6ackaging
3,3:: pcs
3,3::
3,3::
T&$a(8
1=000.00
/"VA2T&&@7 Tarpaulin
9:::: "00.00
T&$a(8
BREAK EVEN ANALYSIS C/8C.8/T&@7 T%A 02A/KAVA@ 6+&@T 0reakeven point is the point at which the business stops running at loss and begins making a profit O by a simple calculation, as followsB
Total fi1ed costs R 6rofit re*uired -----------------------------------------------------86
6rofit margin as a > +r Total fi1ed costs --------------------------------------------------------------6rice of product being sold - variable cost 6
-
6rofit
Total #i1ed Cost rent 3:,:::DR wages3<,=::D R
T2
-
Total 2evenue
TC
-
Total Cost of Avery .nit
service feeG39 9,=5<
V/2&/@T C%AAA "A8&7%T
6 T2 OTC
9,=5
T2 3; ;3<95 =,F5=49
9,=5
TC 9,=5< R FF= ;3<95D =,F5=49
;3<95
6 =F5=49 - =F5=49 :
6rofit margin as a > +r Total fi1ed costs --------------------------------------------------------------6rice of product being sold - variable cost 6
-
6rofit
Total #i1ed Cost rent 3:,:::DR wages3<,=::D R
T2
-
Total 2evenue
TC
-
Total Cost of Avery .nit
service feeG39 9,=5<
V/2&/@T C%AAA "A8&7%T
6 T2 OTC
9,=5
T2 3; ;3<95 =,F5=49
9,=5
TC 9,=5< R FF= ;3<95D =,F5=49
;3<95
6 =F5=49 - =F5=49 :
C/@/"&/@ 0/C+@
6 T2 OTC
9=5
T2 9: 9;:95 =,3EE
9=5
TC 9=5< R 49=9;:95D ;,5:==4
9;:95
6;5:=E O ;5:==4 ::3
%/M J C%AAA
6 T2 OTC
9=5
T2 9: 9=5< =3EE 87
9=5
TC 9=5< R 3:9=5
9=5<
6 =3EE O =3EE :
/MA2&C/@ %+T"+7
6 T2 OTC
9=5
T2 35 <:<55 =;E45;
9=5
TC 9=5< R 4=:<:<55D =;E45E
<:<55
6 =;E45; O =;E45E ::9
7A2M/@ C%AAA #2/@K
6 T2 OTC
9=5
T2 9: 9E;49 =945;
9=5
TC 9=5< R 3:9= 9E;49D =945;
9E;49
6 =94;; O =945; :
T.@/ /8/"
6 T2 OTC
9=5
T2 9: 9=9 =:;:
9=5
TC 9=5< R 4F= 9=9D =:;:
9E;49
6 =:;: O =:;: :
6&@A/668A 68A/.2A
6 T2 OTC
9=5
TC 9=5< R 3:9=5
9=5<
6 =3EE O =3EE :
/MA2&C/@ %+T"+7
6 T2 OTC
9=5
T2 35 <:<55 =;E45;
9=5
TC 9=5< R 4=:<:<55D =;E45E
<:<55
6 =;E45; O =;E45E ::9
7A2M/@ C%AAA #2/@K
6 T2 OTC
9=5
T2 9: 9E;49 =945;
9=5
TC 9=5< R 3:9= 9E;49D =945;
9E;49
6 =94;; O =945; :
T.@/ /8/"
6 T2 OTC
9=5
T2 9: 9=9 =:;:
9=5
TC 9=5< R 4F= 9=9D =:;:
9E;49
6 =:;: O =:;: :
6&@A/668A 68A/.2A
6 T2 OTC
9=5
T2 39 ;49 =4:;
9=5
TC 9=5< R EF= ;49D =4:;
;49
6 =4:; O =4:; :
.8T&M/TA .0A
6 T2 OTC
9=5
T2 3; ;3<95 =F5=4=
9=5
TC 9=5< R FF= ;3<95D =F5=49
88
;3<95
6 =F5=49 O =F5=49 :
0A87&/@ C%+C+
6 T2 OTC
9=5
T2 3; =;<F4 FE3<:E
9=5
TC 9=5< R 49= =;<F4D FE3<:E
=;<F4
6 FE3<:E O FE3<:E :
0/V/2&/@ C2A/M
6 T2 OTC
9=5
T2 3; <59EF =<=F<5
9=5
TC 9=5< R F9= <59EFD =<=F
<59EF
6 =<=F
W& C%+C+
6 T2 OTC
9=5
T2 3E <9955 =3EE:5
9=5
TC 9=5< R 5<9955D =3EE:;
<9955
6 =3EE:5 O =3EE:; :
M/@7+ M/7&C
6 T2 OTC
9=5
T2 3; <4F<5 ==E<<9
;3<95
6 =F5=49 O =F5=49 :
0A87&/@ C%+C+
6 T2 OTC
9=5
T2 3; =;<F4 FE3<:E
9=5
TC 9=5< R 49= =;<F4D FE3<:E
=;<F4
6 FE3<:E O FE3<:E :
0/V/2&/@ C2A/M
6 T2 OTC
9=5
T2 3; <59EF =<=F<5
9=5
TC 9=5< R F9= <59EFD =<=F
<59EF
6 =<=F
W& C%+C+
6 T2 OTC
9=5
T2 3E <9955 =3EE:5
9=5
TC 9=5< R 5<9955D =3EE:;
<9955
6 =3EE:5 O =3EE:; :
M/@7+ M/7&C
6 T2 OTC
9=5
T2 3; <4F<5 ==E<<9
9=5
TC 9=5< R F=: <4F<5D ==E<<=
<4F<5
6 ==E<<9 O ==E<<= ::9
#lour
Cheese "elight
/merican %otdog
Canadia n 0acon
7erman Cheese #ranks
%am J Cheese
Tuna alad
6ineapple 6leasure
0avarian Cream
.ltimate .be
wiss Choco
0elgian Choco
Mango Magic
9
9
9
9
9
9
9
9
9
9
9
9
89
Aggs
3
3
3
3
3
3
3
3
3
3
3
3
ugar
3
3
3
3
3
3
3
3
3
3
3
3
0utter
=
=
=
=
=
=
=
=
=
=
=
=
#resh milk
=
=
=
=
=
=
=
=
=
=
=
=
wiss choco 0elgian choco 6ineapple
<:: ;9= 33F
.be
99=
Mango
9=:
Tuna Cheese
;F= 9F=
9F=
%am
99=
%otdog
;=:
0acon
;9=
0avarian
99=
T&$a( 5&$
?.?@
9.@0
9."@
10."@
10.00
9.?@
.?@
?."@
?.?@
>
9."@
?.@0
+verheads
<9=
<F=
=3E
;4<
=3<
=34
9;<
<;:
9F=
;=:
<F4
<;5
Aggs
3
3
3
3
3
3
3
3
3
3
3
3
ugar
3
3
3
3
3
3
3
3
3
3
3
3
0utter
=
=
=
=
=
=
=
=
=
=
=
=
#resh milk
=
=
=
=
=
=
=
=
=
=
=
=
wiss choco 0elgian choco 6ineapple
<:: ;9= 33F
.be
99=
Mango
9=:
Tuna Cheese
;F= 9F=
9F=
%am
99=
%otdog
;=:
0acon
;9=
0avarian
99=
T&$a( 5&$
?.?@
9.@0
9."@
10."@
10.00
9.?@
.?@
?."@
?.?@
>
9."@
?.@0
+verheads
<9=
<F=
=3E
;4<
=3<
=34
9;<
<;:
9F=
;=:
<F4
<;5
Mark-ups
9=:
9F5
955
9;E
99=
9
93=
99=
99=
9=:
9F<
93F
Total
3<=:
3E:<
3F94
3FE;
3F<5
3F<:
334<
394:
39F=
3=
3=FF
3<3=
SRP
1+
1>
"0
"0
"0
"0
1"
1+
1+
1
1>
1+
90
T+CK T.2@+VA2 ales 3;4,FE: T+ --------------------------------- -------------------- >.@? /verage stock at cost 3F,;5;
<: "/I +# &@VA@T+2I -------- <= days 5=F
+pening stock R closing stock
T+CK T.2@+VA2 ales 3;4,FE: T+ --------------------------------- -------------------- >.@? /verage stock at cost 3F,;5;
<: "/I +# &@VA@T+2I -------- <= days 5=F
+pening stock R closing stock /VA2/7A T+CK /T C+T -------------------------------------------9 9<,<39 R 33,E=E ------------------------ 9
1?= +>+
FEASIBILITY RATIOS
C+88ACT&+@ 6A2&+" This measures the average age of your accounts receivable, and is an e1cellent test which often surprises many businesses The lower the number, the safer the receivables is the usual measure for comparison &nstead of collecting money could you be paid at the time of sale by credit card?
91
/VA2/7A C+88ACT&+@ 6A2&+" 2eceivables ---------------------------ales per "ay
: --------------=,:::
0
62+#&T +@ /8A @et profit after ta1es ;5, 5<9 ------------------------------------ ---------------------ales 3;4, FE:
0.#" or ##
2AT.2@ +@ T+T/8 /AT @et profit after ta1es ;5, 5<9 ---------------------------------- ----------------- Total assets <9<,<39
0.1@ or 1@
2AT.2@ +@ &@VATMA@T +2 %/2A%+8"A2 #.@" @et profit after ta1es ;5, 5<9 -------------------------------------------------- ------------------ 0.11 or 11 &nvestment or shareholders fund ;;:,:::
PROFIT= LOSS= DISCOUNTS
62+#&T /@" 8+ 6 selling price C6 cost price
6 profit rate or markup rateD e1pressed as a fraction of selling price
92
6 actual profit
6C profit rate or markup rateD e1pressed as fraction of cost price
8 actual loss
8 loss rate or mark down rateD e1pressed as fraction of selling price 8C loss rate or mark down rateD e1pressed as fraction of cost price
The following relationships holdB 6 6 - C6 8 C6 O 6 6 6 --------- 6
6 6C ---------C6
Cheese "elight /merican %otdog Canadian 0acon 7erman Cheese #ranks %am and Cheese Tuna alad 6ineapple 6leasure 0avarian Cream .ltimate .be wiss Chocolate 0elgian Chocolate Mango Magic
/CT./8 8+ Cheese "elight 6 39 O FF= ;9= /merican %otdog 6 35 O 4=:
8 FF= O 39 -;9= 8 4=: O 35 -5=
C+T 62&CA FF= 4=: 49= 3:9= 3: 4F= EF= F9= FF= 5 49= F=:
62+#&T 2/TA +# A88&@7 62&CA 6 ;9=G 39
6C ;9=G FF=
:<=;9 or <=;9 >
:=;5; or =;5; >
6 5=G 35
6C 5=G 4=:
:;F99 or 93
A88&@7 62&CA 3; 35 9: 9: 9: 9: 39 3; 3; 3E 3; 3;
62+#&T 2/TA +# C+T 62&CA
:54;F or
5= Canadian 0acon 6 9: O 49= 3:F= 7erman Cheese #ranks
;F99 > 6 3:F=G 9:
8 49= O 9: - 3:F= 8 3:9= O 9: -4F=
6 9: O 3:9= 4F= %am J Cheese 6 9: O 3: 3: Tuna alad 6 9: O 4F= 3:9= 6ineapple 6leasure 6 39 O EF= =9= 0avarian Cream 6 3; O F9= EF= .ltimate .be
8 3: O 9: -3:
8 EF= O 39 -=9= 8 F9= O 3; -EF= 8 FF= O 3;
E9= wiss Choco
8 5 O 3E
6 3E O 5 5 0elgian Choco 6 3; O 49= ;F= Mango Magic 6 3; O F=:
>
6 4F=G 9:
6C 4F=G 3:9=
:;5F= or ;5F= >
:4=39 or 4=39 >
6 3:G 9:
6C 3:G3:
6 3:9=G 9:
-39=
-E9=
:=
33E9 or 33E9
:= or =:>
8 4F= O 9:
6 3; O FF=
54;F > 6C 3:F=G 49=
-5
-;F= 8 F=: O 3; -E=
E=
>
6 =9=G 39
6C =9=G EF=
:;<
:FFF5 or FFF5 >
6 EF=G 3;
6C EF=G F9=
:;593 or ;593 >
:4<3: or 4<3: >
6 E9=G 3;
6C E9=G FF=
:;;E; or ;;E; >
:5:E= or 5:E= >
6 5G 3E
6C 5G5
3:=3 or 3:=3
:
6 ;F=G 3;
6C ;F=G 49=
:<<4< or <<4<>
:=3<= or =3<= >
6 E=G 3;
6C E=G F=:
:;E;< or ;E;< >
:5EEF or 5EEF >
BUDGET AND BASIC RECORD KEEPING
Monthly or daily, weekly, annualD budget and deviation 94
6C 3:9=G 4F=
:=39= or =39= >
:= or =: >
8 49= O 3;
:
0udget for Month
/ctual for Month
"eviation for Month
ales
35:,:::
3;4,FE:
<:,9;:
8ess - Cost of goods
;:,:::
<,355
7ross profit on sales
3;:,:::
339,4;5
9F,:=9
/dvertising
3,:::
9::
5::
Wages
3<,=::
3<,=::
:
.tilities
;,:::
<,4::
3::
+ffice supplies
3,:::
3,:::
:
Monthly ervice #ee
3:,:::
F,;55
9,=39
8icenses
4,:::
E,:::
<,:::
2ent
3:,:::
3:,:::
:
6ackaging
3,=::
3,3::
;::
T&$a( *x/**
=:,:::
;<,355
E,539
N*$ /%&-$ &% (&
4:,:::
E4,FE:
9:,9;:
I5&2* Tax
9F,:::
9:,495
E,:F9
N*$ /%&-$ a$*% Tax
E<,:::
;5,5<9
3;,3E5
HOW MUCH MONEY WILL YOU NEED
&nstead of just going by Ngut feels$ it is essential that projected funding re*uirements be carefully considered and costed %ere is a simple table to assist with the process ITEM
PHP <9<,<39 &ncluded in franchise fee 3:,::: <,4:: F,;55
Working capital Capital Works 2ent .tilities Monthly ervice #ee 95
taff training taff alary 2esearch J "evelopment /dvertising 6ackaging 8icensesG2egistration Ta1es +ffice upply TOTAL
&ncluded in franchise fee 3<,=:: &ncluded in franchise fee 9:: 3,3:: E,::: ;;,495 3,::: +11=+">
FORECAST SALES AND PROFITS
@ov 9:3E
"ec 9:3E
'an 9:3F
/8A
3;4, FE:
3=F, 9;5
3E=,33:;:
+6A@&@7 T+CK
9<,<39
9<,FF5
9;,9=<
8A C8+&@7 T+CK
33,E=E
33,554
39,39E
T+T/8 C+T +# 7++" +8"
<5,:9<5:
72+ 62+#&T +@ /8A
339, 4;5
334,4E4FE
39F,:5EE:
W/7A
3<,=::
3<,=::
3<,=::
2A@T
3:,:::
3:,:::
3:,:::
.T&8&T&A
<,4::
;,:::
<,4::
8&CA@A
E,:::
:
:
M+@T%8I A2V&CA &@C+MA
F,;55
F,5E9;:
5,9===9
6/CK/7&@7
3,3::
3,3::
3,3::
+##&CA .668I
3,:::
3,:::
3,:::
/"VA2T&&@7
9::
:
9::
T+T/8 A6A@A
;<, 355
OPERATING PROFIT
9= ?0
>"=@0?.#
>9=1#1.0>
8A A6A@A
SALES INCOME FORECAST
96
/.M6T&+@ • •
=> increase in ales every month 9> increase in C+7s
@ov 9:3E
"ec 9:3E
'an 9:3F
Working days
<:
<:
<:
> of /8A
3;4, FE:
3=F, 9;5
3E=,33:;:
C+T +# 7++"
<5,:9<5:
72+ 62+#&T
339, 4;5
334,4E4FE
39F,:5EE:
/dvertising
9::
:
9::
6ower
<,4::
;,:::
<,4::
8icenses
E,:::
:
:
Monthly ervice #ee
F,;55
F,5E9;:
5,9===9
+ffice upply
3,:::
3,:::
3,:::
6ackaging
3,3::
3,3::
3,3::
2ent
3:,:::
3:,:::
3:,:::
Wages
3<,=::
3<,=::
3<,=::
T+T/8 /8A &@C+MA
Cheese "elight /merican %otdog Tuna alad %am and Cheese Canadian 0acon 7erman Cheese #ranks 6ineapple 6leasure .ltimate .be Mango Magic 0avarian Cream wiss Chocolate 0elgian Chocolate
8A A6A@A
97
T+T/8 A6A@A
;<, 355
NET PROFIT
9= ?0
>"=@0?.#
>9=1#1.0>
TRADING AREA
TERTIARY TRADING AREA
SECONDARY TRADING AREA
PRIMARY TRADING AREA
62&M/2I T2/"&@7 /2A/ E:> to F:> of our customer will come from subdivisionsGvillages of Molino 9, Molino < and (ueens 2ow West AC+@"/2I T2/"&@7 /2A/ 9:> to <:> of our customer will come from subdivisionsGvillages of Molino 3, (ueens 2ow Central, oldiers &V and Makrol TA2T&/2I 8AVA8
98
The 6robability that other customers will buy in our store will be come from the subdivisionsGvillages in an @icolas <, (ueens 2ow Aast, Mambog and Citihomes
V-CENTRAL
MOLINO
MOLINO
8
10
546*154
15
5 20
20
SM CITY MOLINO
RFC MALL 5
364*151
151*215
QUEENS ROW WEST 5 20
H, '%a-$) 2&!*(
99
E$-2a$-' P&$*$-a( Sa(* U-' H, G%a-$) M&!*(
#ormulaB 6ij j G Tij Sj G Tij
WhereB
6ij is the probability that customer - shops at location -, j si!e of the store at location : and, Tij travel time for customer - to get to location :.
MOLINO #
V-Central Mall Molino J M City Molino 6ij j G Tij
6ij j G Tij
Sj G Tij 6/
524300 / 15
2
Sj G Tij 2
6/ 2
9<<:99 9<<:99 R 3<33
PA < 0.99 &% 99
M City Molino J 2#C Mall 6ij j G Tij
Sj G Tij
524 / 225 + 131075 / 10
2#C Mall J V-Central Mall Molino
393225 / 400 + 1310.75 / 5
2
393225 / 20
45<:E 45<:E R 333<
PA < 0.99 &% 99 100
6/ 2
524300 / 15
2
524300 / 225 + 393225 / 5
9<<:99 9<<:99 R 45<:E
PA < 0.99 &% 99
MOLINO "
V-Central Mall Molino J 2#C Mall 6ij j G Tij
V-Central Mall Molino J M City Molino 6ij j G Tij
Sj G Tij 6/
393225 / 8
6ij j G Tij
Sj G Tij 2
2#C Mall J M City Molino
Sj G Tij 2
524300 / 20
6/
393225 / 64 + 131075 / 10
2
6/ 2
524300 / 400 + 131075 / 8
E3;;3; 3<3:F= E3;;3; R 3<3:F= 3<3:F= R 9:;5:= 7rainsmart and Christian PA < 0.>" &% >" PA < 0.#9 &% #9 6ij j G Tij
393225 / 5
2
393225 / 25 + 524300
G;::
3=F94 3=F94 R 9E93=
PA < 0.9" &% 9"
Sj G Tij 6/
2 7UEENS ROW WEST
112/ 1
2
112+ 116 / 10
V-Central Mall Molino J 2#C Mall J M City M City Molino Molino 339 6ij j G Tij j G Tij 339 6ij R 3E3 Sj G Tij
524300 / 20
524300 / 400 + 13175 / 5
9:4F9 9:4F9 R =9;<
PA < 0.>0 &% >0
6/ 2
6ij j G Tij
339 Sj G Tij 33<E3
2
6/
V-Central Mall Molino J 2#C Mall
393225 / 5
Sj G Tij 2
2
6/ 2
393225 / 25 + 524300 / 20
3=F94 3=F94 R 3<3:F= 101
PA < 0.9" &% 9"
393225 / 5
2
393225 / 25 + 131075 / 5
34EEE39= 34EE39= R =9;<
PA < 0.9? &% 9?
