Transcript
Dr. Yanga’s College Inc.
Wakas, Bocaue Bulacan
College of Accountancy
Principles
Of
Marketing
By:
Jesika Mae M. Tendero
Christine Joy D.G. Custodio
Liza T. Salamat
I. Executive Summary
Buko Sarap is a food cart started by enterprising friends namely Christine, Liza and Jesika. It
guarantees quality of a 100% natural juice. Buko Sarap discovered a system that extracts buko
juice in a systematic way wherein the buko is extracted and chilled in a hygienic manner keeping
its freshness and natural elements. Because of the countless benefits of buko, Buko Sarap will
certainly address the needs of people who are health conscious. We solve the problem of
answering to the demand of Buko Juice in a hygienically and modern way, which consist in
chilling the juice soon after it was extracted without needing to add ice or cold water. Buko
Sarap also introducing our freshly blended Buko Shake a new choice to those People who have a
healthy life by offering 100% pure and natural buko meat, on the other hand the fact of
extracting the juice in right moment it guarantees the quality of our products through a new
technology that also allows the conquest and settlement of large sections in the market such as:
shopping center, supermarkets, schools, metro stations and so on. Pioneering is the right word for
this system which consists in extracting, chilling the buko juices hygienically and safely, keeping
its natural properties. This system also favors a practical way of dealing with a product that was
formerly available to consumers only in a marginal way. "ISANG BUKO KA LANG" that is
BUKO SARAP!
II. Company Profile
Mission
The Buko Sarap aims at satisfying the tastes and needs of its consumers in the Filipino
society. The efforts of the Buko Sarap are focused on bringing the most distinctive and
innovative products to the market in Philippines. The main concern of the business is the health
of its customers and thereby it strives to serve hygienic and healthy food along with taste and
quality.
Vision
The motto of the Buko Sarap is “WHAT YOU SEES IS WHAT YOU DRINK”. The vision
is to attain the number one position in providing quality food with international standards, taste
and freshness. The Buko Sarap aims to be a leader in the area of ethics and values in the
continuously growing food industry in the national and international markets.
III.Current Marketing Situation
Competitive Profile Matrix
Our main competitors in this segment are any food outlets within the 300 meter radius along the
Mall. In our location, there are Fruitas, Zagu, Buko Express.
FruitasIn 2002, when Lester Yu put up Lush Corporation a company that serves fresh fruit juices and
other healthy refreshments he knew he would someday go beyond servings drinks. Fruitas is
locally owned franchise who sells Fresh fruits shakes. Fruitas had expanded its operation
nationwide.
ZaguZagu introduces the “Pearl Drink” to the Philippine market. The drink’s uniqueness and the
variety of flavors it offers broaden its appeal to the customers and keep them interested. Taste
and flavor is the essential component, keeping customers coming back for more.
Buko Express
Buko Express is one of the significantly emerging food cart concepts in the market today. Buko
Express starter as an offshoot of Sonia Buko and Native Kakanin Express chain of food carts that
started in 2005 by an enterprising couple.
Porter’s Five Forces Model
HIGH
LOW LOW
HIGH
LOW
Threat of New Entry
The threat of new entrants is HIGH because the product in prone on imitation. Also,
nowadays, entrepreneurs are aiming for product innovation that mainly draws more customers.
Competitive Rivalry
The rivalry among competing firms is LOW because competitors are inconsistent in
identifying our strategy on how to keep the buko in its natural properties which we called
pioneering. Also, our pricing is in consideration.
Buyer Power
The bargaining power is LOW because even though customer switching costs are nearly
zero, the Buko Express does not worry about loyalty because most Filipinos loves the natural
taste of buko especially those who are health conscious.
Threat of Substitution
With so many firms in the quick service, low switching costs, similar products, and
healthier options, the threat of substitutes is HIGH.
Supplier Power
The bargaining power of suppliers is LOW because there are thousands of suppliers of
buko to choose from and select theirs through a competitive bid process. We can switch suppliers
easily and tend to make up a large portion of the supplier’s revenue.
IV. Marketing Mix Analysis
Product and Price
Place
(Target place if we will ready to upgrade our business)
5 years after
Promotion
Social Media, Samples and coupons, creative and attractive packages
People
Competence:They possess the required skills and knowledge. They are courteous, friendly, respectful, and considerate with credibility. They are trustworthy, reliable and perform the service consistently and accurately.Responsiveness:They respond quickly to customer requests and problems;
Trained people who can serve their customer in an excellent manner.
Physical Evidences
The outside of the package will attract a first-time buyer; the quality of food will bring buyers
back and purchase more, and also the place where our business is located.
Personalization
Buko Sarap focuses on “repeat customer. They give rewards and offer them discounts to increase
their loyalty.
V. Comparative SWOT Analysis
SWOT BUKO SARAP Competitors
STRENGTHS
Brand Strengths And
Uniqueness
Product That Tend To Make
Consumers Lifestyle Healthy
Strong Existing Distribution
Channel
Leading smoothie
brand
Consistent growth
Distribution
channels
WEAKNESSES
Lack Of Product Awareness Availability Of Coconut
Juice
Low customer base
OPPORTUNITY
Introduction Of Buko Sarap
Brand Is Attractive To
Consumers
Increase market
share
Emerging markets
Increase product
range
THREATS
Growing Number Of Competitors
Downward Price Pressure
Large Number Of Indirect Competitor
Changing customer
tastes
Brand susceptibility
BUKO SARAP SWOT
Strengths
BRAND STRENGTHS AND UNIQUENESS – The Company’s brand name is original and attractive to the customers.
PRODUCT THAT TEND TO MAKE CONSUMERS LIFESTYLE HEALTHY – The product contains nutritional benefits to the customers.
STRONG EXISTING DISTRIBUTION CHANNEL – This kind of product usually distributed through stall or carts.
Weaknesses
LACK OF PRODUCT AWARENESS – Though the product is new, it may fail to create the proper awareness towards the target customers.
AVAILABILITY OF COCONUT JUICE – Philippines climate is suitable for the coconut juice. So people can collect juice easily. So it is the weakness of our product to commercialize.
Opportunities
INTRODUCTION OF BUKO SARAP – The Company added some innovations and twist that we want to share or introduce to the target market.
BRAND IS ATTRACTIVE TO CONSUMERS – The product’s unique name seems to be attractive to the consumers.
Threats
Growing Number of Competitors - As the r e i s a g rowth v i s i b l e i n t he beve rage industry, many multinational and national companies are entering in the market to serve the customers. To survive in the industry, Buko Sarap has to face the threats created by these new entrants.
Downward Price Pressure - Increased competition and market-share strategies are perusing beverage companies to decrease their prices. So the profit margin is very low in here.
Large number of indirect Competitor - In the coconut juice, there are lots of indirect competitor. Lots of coconut sellers are available all around. It is easy to collect coconut and its juice. So these coconut sellers are the main threats of our product.
Competitors SWOT
Strengths Leading smoothie brand –It has established itself as a premium brand by charging
premium prices above its other similar specific competitors based on its unique selling point.
Consistent growth – “Philippines fastest growing fruit & shakes smoothies business” Distribution channels – They are currently stocked in over hundred retail outlets
including larger supermarket chains.
Weaknesses Low customer base
Opportunity Increase market share - The market operates in is still growing as more and more
consumers are becoming cautious of the effects of processed goods. This is a clear opportunity for them to cease more of the market.
Emerging markets – Expansion. Increase product range – i.e. vegetable, dairy and whole grain products.
Threats Changing customer tastes i.e. product range/variety becoming repetitive. Brand susceptibility – As the company grows the brand’s values are subject to greater
scrutiny
VI. Objectives
Our objective is fully professionalized and we have the target to provide service in a
familiar atmosphere and with greater warmth.
To create a strong product awareness.
To provide fun, delicious, appetizing and healthy buko juice while maintaining the
commitment to our consumers.
To achieve an increasing number of loyal consumers.
To maintain a positive, strong growth of the company each year.
To become the top market leader in that particular product and segment.
VII. Operating Plan
Facilities & Offices
The cart will be at a mall. The licenses and codes' issues are all in order. New equipment will
be purchased and installed by the general contractor.
Hours of Operation
Buko Sarap 7 days a week, service will begin at 11:00 AM and end at 11:00 PM.
Employee Training & Education
Employees will be trained not only in their specific operational duties but in the philosophy
and applications of our concept. They will receive extensive information from the chef and be
kept informed of the latest information on healthy eating.
Systems & Controls
A big emphasis is being placed on extensive research into the quality and integrity of our
products. They will constantly be tested for our own high standards of freshness and purity. Food
costs and inventory control will be handled by our computer system and checked daily by
management.
Food Production
Most food will be prepared on the premises. The kitchen will be designed for high standards
of sanitary efficiency and cleaned daily. Food will be made mostly to order and stored in large
coolers in the basement.
Delivery
Food for delivery may be similar to take-out (prepared to order) or it may be prepared earlier
and stocked.
VIII. Management Plan
Jesika Mae Tendero, Christine Joy Custodio, Liza Salamat | Owner
Owners is extremely dedicated and motivated to creating a thriving healthy drink and feels confident in succeeding based on her well-rounded experience, established sound vendor and customer relationships, and strong work ethic.
Owners are graduated from DYCI batch 2014 with a bachelor's degree on Accountancy and Board passers of batch 2015.
Personnel Plan
The personnel plan is included in the table, below. In addition to the owner, there will be one part-time (30 hours/week).
Employees of Buko Sarap will be paid competitively and will receive in-depth store training. Additionally, employees will receive special store benefits including:
30% Store Discount Special monthly bonuses as sales goals are met Paid Holidays Paid Time Off (PTO) based on # of hours worked
Our philosophy is to empower our staff to do the best they can and give them the freedom to do so. Inevitably, they will make mistakes and if they don't make mistakes, they don't learn. I will lead by delegation but I won't let "hang themselves”. We will provide appropriate objectives, guide them throughout the process (utilizing Management by Objectives) and help them make decisions based on the company philosophy. I believe in recognizing good work and letting my staff know that I value and appreciate them when a job is well done. I have confidence my philosophy will not only attract smart and loyal employees, but also develop strong mutual respect, as they will feel that their ideas are valued and that they are respected.
Year 1
Owners ₱20,000
Personnel ₱11,000
Total People 5
Total Payroll per month ₱31,000
Total Payroll per year : ₱ 31,000 x 12 months = ₱ 372, 000
IX. Financial Plan
Start-up Funding
Currently, the company is owned by the original 3 founders, who each will contribute ₱35,000. This will more than cover start-up requirements, and provide the business with a cash cushion to use for expansion over the first three years.
Start-up Funding
Start-up Expenses to Fund ₱ 40,000
Start-up Assets to Fund ₱ 65,000
Total Funding Required ₱ 105,000
Assets
Cash Requirements from Start-up ₱ 50,000
Additional Cash Raised ₱ 55,000
Total Assets ₱ 105,000
Liabilities and Capital
Liabilities
Current Borrowing ₱ 0
Long-term Liabilities ₱ 0
Accounts Payable (Outstanding Bills) ₱ 0
Other Current Liabilities (interest-free) ₱ 0
Total Liabilities ₱ 0
Capital
Planned Investment
Jesika Mae Tendero ₱ 35,000
Christine Joy Custodio ₱ 35,000
Liza Salamat ₱ 35,000
Additional Investment Requirement ₱ 0
Total Capital ₱ 105,000
Total Capital and Liabilities ₱ 105,000
Sales – Buko Sarap is basing its projected sales on the assumption that the first unit will open on July 1, 2020. We have projected sales on the low side using 100,000 per year per cart. We did not factor in any sales growth for subsequent years.
Cost of Goods Sold -- The cost of goods sold was determined by taking actual Profit and Loss statements from various food business concepts and then using our pricing structure and guest counts to arrive at costs.
Management Payroll -- Figures are based upon the use of five managers per unit at our maximum bonus and salary levels. If we use four managers per restaurant, this will lower our payroll.
Fixed and Variable Expenses -- The various fixed and variable expenses were determined by taking actual numbers from several different restaurant concepts.
Marketing Fees -- These funds will be used for the production of various marketing materials.
Advertising -- These funds will be used, if necessary, to maintain our sales at projected levels. If we are running significantly ahead of our sales projections, then these funds may not be necessary.
Management Fees -- We will use these pesos for accounting and payroll services of our firm. As we grow in size, this cost burden will shrink per store due to efficiencies in volume.
Important AssumptionsThe financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendix. Interest rates, tax rates, and personnel burden are based on conservative assumptions. Some of the more important underlying assumptions are: We assume a strong economy, without a major recession. We assume, of course, that there are no unforeseen changes in consumers' tastes or interests
to make our concept less competitive.
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0
Key Financial IndicatorsFood costs must be kept at, or below, 35%.Unit level employee costs must be kept at, or below, 17%.All systems will be computer-based, allowing for accurate off-premises control.
Break-even AnalysisVARIABLE COSTS
1. 35.00% - Cost of goods sold.2. 17.00% - Employee payroll.3. 00.25% - Credit card charges.4. 00.33% - Marketing fees.5. 2.00% - Management fees.6. 2.00% - Advertising.7. 2.00% - Management bonus.8. 3.03% - Employee payroll taxes and benefits.9. 1.50% - Paper and cleaning.10. 63.11% - Total variable costs.
ANNUAL FIXED COSTS1. ₱ 30,000 - Management salaries.2. ₱ 37,000 - Management payroll taxes and benefits.3. ₱ 20,100 - Controllable expenses minus credit card charges and paper/cleaning.4. ₱ 10,200 - Other expenses minus marketing fees, advertising, and management fees.5. ₱ 15,000 - Depreciation.6. ₱ 112,300 - Total fixed costs
Pro Forma Profit and Loss
Month 1 Month 2 Month3
Sales ₱60,000 ₱75,000 ₱100,500
Direct Cost of Sales ₱40,000 ₱45,000 ₱55,000
Other Costs of Sales ₱0 ₱0 ₱0
Total Cost of Sales ₱20,000 ₱30,000 ₱45,500
Expenses
Payroll ₱31,000 ₱31,000 ₱31,000
Marketing/Promotion ₱2,000 ₱2,000 ₱2,000
Depreciation ₱0 ₱0 ₱0
Total Operating Expenses ₱33,000 ₱33,000 ₱33,000
Net Profit (₱11,000) ₱3,000 ₱12, 500
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