Bagong Barrio Caloocan City

CHAPTER I PROJECT BACKGROUND AND HISTORY Project Proponents The proponents of the business are Sunshine DIzon and Jelene Ibarrola. They thought of a unique product that is rare in the market which is leche flan in an egg shell. The business is named Sweet Shilenes because leche flan is sweet that is why Sweet is their first business name and Shilenes for the proponents name which is Shunshine and Jelene. Propose name of the Business The proposed name of the business is Sweet Shilenes which comes from sweet leche flan and shilenes from Shunshine and Jelene the proponents. Sweet Shilenes had been chosen in order to procure the best unique business with our specialization in servicing the people and giving them the best dessert product available in the country. Type of Business Organization Partnerships The proposed business will be organized as a general partnership. This partnership will be formed according to the articles of the Civil Code of the Philippines that defines partnership as an organization where two or more persons bind themselves to contribute money, property or industry to a common fund with the intention of dividing the profits among themselves.

The partnership will operate based on its partnership agreement in its Article of Partnership specifies the functions and responsibilities of each members. This type of business ownership is considered because of the following advantages: it could easily be formed there are more persons to conduct the business and to handle its problems and the combined ability and resources of partners are source of strength.

The proposed business will adopt the line type of internal organization. Under this type of organization, there is a direct flow of authority from one top position to immediately subordinate levels. This authority flows to subordinate positions directly below and as it goes down it is subdivided. The line type of organization has clear and distinct channels of authority and responsibility Location of the Business The business is located in Bagong Barrio Caloocan where one of the proprietor was residing. The business would be located in Bagong Barrio Caloocan where many people are passerby and Brief History of the Business Leche Flan is a dessert Filipinos love. Leche Flan is a very sweet and caramel like dessert. Lechan Flan is mostly cooked in Christmas and without it your Christmas eve is not complete. But, you can also bake it at anytime of the year and sell it to other people. This will be a good source of income because it is a popular food that people loves.

Sweet Shilenes create new dessert product relating to current taste of community. This marketing plan illustrates our market segments and the strategies we are employing to get customers and create a solid revenue stream. We are not just any food establishment. Our unique focus of creating new dessert and appetizers with a new twist gives us an advantage over our competitors by giving customers a new taste to enjoy delicious dessert. Sweet Shilenes is our new product to be introduced to the market. This marketing plan is prepared for Sweet Shilenes. People find ways on how to save money in many ways, in result; we created a new twist for a dessert meal from the existing one. Just same thinking that the enterprise would want to achieve, producing sweet leche flan that place in an egg shell. If this is the idea, in the beginning be careful while breaking the eggs. Make a small hole in the eggshell to separate the egg yolk from the egg white. Do the same instructions above but instead of putting it in an aluminum tray; use a food syringe to transfer the mixture inside the eggshell. Try to cover the hole in the egg shell. Place the egg shells in the steamer carefully. Let it cook for 45 minutes to 1 hour. Place it in a package creatively and voila, you have a yummy dessert for the whole family.

CHAPTER II TECHNICAL STUDY PRODUCTION DESCRIPTION Sweet Shilenes is determined to become a daily necessity for local Leche Flan in an Eggshell dessert addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality gourmet Leche Flan in an Eggshell dessert and great service, Sweet Shilenes will capitalize on its proximity to the Bagong Barrio Caloocan City to build a core group of repeat customers. Sweet Shilenes will offer its customers the best prepared leche flan in an egg shell in the area that will be complimented with other pastries, as well as free books that its patrons can read to enjoy their visit. PRODUCTION SCHEDULE In starting the operation of the business, the owners should complete the necessary documents and requirements needed for the legalization; this stage of business is organized in a formal manner, which requires registration in various regulating government agencies. Before a partnership can operate legally, it must first to comply with certain level registration that are summarized as follows: Place of Registration 1. Security and Exchange Commission (SEC)

2. Department of Trade and Industry (DTI) 3. City of Municipal Hall Permit (Mayors Permit) 4. Bureau of Internal Revenue 5. Social Security System 6. Other Agencies as may be required In building business there are certain requirements to make specific business legal. If the following cannot be obtained the operation will not function well. BIR 1902 Business Permit DTI application For employees: SSS,PhilHealth,Pag- ibig Declaration of real property tax

Barangay Clearance Fire Inspection CertificateSEC

Sanitary plumbing Permit Building Permit Manufacturing process The production is very simple. Its main concern is to ensure the quality and taste of its product. Figure 1.4 Shows Manufacturing Process of Leche Flan in an Egg Shell
Combine all ingredients,

Crack egg shell in two not even and pour leche plan in the biggest part.

Top with the egg shell remaining

Freeze for 30 minutes and serve

Recipe of Leche Flan in an egg shell 6 large eggs 3 cups whole milk 1/2 vanilla bean, seeds scraped 1/2 cup sugar 1 envelope unflavored gelatin (about 2 1/4 teaspoons) 1/2 teaspoon salt

Directions

Using a paring knife, score eggshells two-thirds of the way up, and carefully crack. Separate egg whites and yolks. Transfer 5 egg yolks to a bowl; reserve egg whites and remaining yolk for another use. Bring a small pan of water to a boil. Add eggshells, and boil 3 minutes. Using a slotted spoon, remove shells, and drain. Scrape out membrane, and discard. Set eggshells aside in an egg carton. Put milk, vanilla bean and seeds, and sugar into a medium saucepan; sprinkle with gelatin. Let stand until softened, about 3 minutes. Cook over low heat, stirring until sugar and gelatin are dissolved, about 2 minutes. Whisk salt with egg yolks. Slowly whisk in hot milk mixture until combined, and then pour back into saucepan. Cook over low heat, stirring occasionally, until custard is thick enough to coat the back of a spoon, about 3 minutes. Remove vanilla bean. Pour custard through a sieve into a pitcher; discard solids. Pour 2 tablespoons custard into each eggshell, and divide remaining custard among six 6-ounce ramekins (alternatively, divide all custard among eight 6-ounce ramekins). Refrigerate until set, about 4 hours. BUILDING & FACILITIES EQUIPMENT Computer w/printer Telephone Wall clock Fax Machine Television CD player QTY. 2 2 2 1 4 1 UNIT COST 25,000 1,500 200 5,000 5,000 5,000 TOTAL COST 25,000 3,000 400 5,000 20,000 5,000

CD rack Medicine Cabinet Component Emergency light Generator Office Chairs Air Conditioner Exhaust fan Fire extinguisher Oven chamber Walking chiller Griller CAKE CABINET WATER SOFTENER Gas range (heavy Duty) Water dispenser Stainless knives Spoodle Ladle Measuring cups Mortar and pestle Dessert plates Glasses plates tray Tissue holder Pitcher Leche Flan in an Eggshell dessert Mugs Kettle Juice dispenser cups Knife sharpener

1 1 1 4 1 2 4 2 4 1 1 1 2 1 1 1 1set 4 4 1set 2 250 250 250 75 40 3 100 2 7 250 2

400 550 19,550 1,450 12,675 1000 17,000 1,800 3,600 100,100 98,700 50,000 60,000.00 8,000.00 15,770 1,000 200 20 20 30 40 200 50 60 200 30 250 90 300 500 25 250.00 8,000.00 15,770 1,000 200 80 80 90 80 50,000 12,500 15,000 15,000 1,200 750 9,000 600 3,500 6,250 500.00

400 550 19,550 5,800 12,675 2,000 68,000 3,600 14,400 100,00 98,700 50,000 120,000.00

Wooden rice spoon Set of measuring spoon Measuring cup Bottle opener Food tongs

2 1 1 1 3

30.00 34.75 40.00 85.00 70.00

60.00 34.75 40.00 85.00 210.00

WASTE DISPOSAL In Bagong Barrio Caloocan City especially in the place where the shop is located, the proponents will pay the disposal team which comes everyday to pick up the garbage. Every other day of throwing the garbage will make the environment of the Sweet Shilene Leche Flan in an Eggshell. It will provide customer satisfaction on seeing the environment of the Sweet Shilene Leche Flan in an Eggshell business in neat. SWOT Strengths:
1. Demand: The demand for leche flans and quality products at competitive prices

is enormous in Bagong BArrio Caloocan City.

2. Customer base: The customer base which is the main element whilst determining

the target market in Bagong BArrio Caloocan City.

3. Location: The location factor as argued by Laurence Mathew (2005) is a critical

element for strategic positioning of an organization in the target market. The fact that the Bagong BArrio Caloocan City importance and a shop located there can attract customers from both the national and international market makes the location factor

as a key strength for setting-up a Sweet Shilenes Leche Flan in the Bagong BArrio Caloocan City.

Weaknesses:
1. Volatile customer base: The major weakness is the volatile nature of the

customer base in the Bagong BArrio Caloocan City. The fact that even though the customer potential in the Bagong BArrio Caloocan City is vast, but ever changing due to the nature of the business in the Bagong BArrio Caloocan City makes the customer potential as a critical weakness as much as it is argued as a strength. Since this is an apparent factor for any shop in Bagong BArrio Caloocan City, the weakness is oblivious in nature.
2. Seasonal business: Another important factor that needs to be considered is that

Bagong BArrio Caloocan City caters high level of customers during the periods of holiday making whilst supports only the business travellers at other times. This makes it clear that the business for the Sweet Shilenes Leche Flan is seasonal in nature. Opportunities:
1. Differentiation by Pricing: the demand for quality products at competitive

pricing is an increasing demand at the Bagong Barrio Caloocan City especially from the customers visiting from the far east of the world as argued by Laurence Mathew (2005). This demand can1 be harnessed by the Sweet Shilenes Leche Flan through providing value-added services and quality products at competitive prices. The

financial analysis in the next section will provide a deeper insight on the pricing of the products.
2. Diverse Target market: The diversity in the market which is merely due to the

diversity in the passengers to the Bagong Barrio Caloocan City provides an effective method of attracting a niche market or more than one segment of the market with customised products whilst providing a base line of product range to meet the overall demand of the customers.
3. Promotion through embracing culture: The fact that the Bagong Barrio

Caloocan City caters visitors from difference culture makes it clear that the Sweet Shilenes Leche Flan can attract customers through embracing its promotions reflecting upon specific culture. This even though might appear niche marketing, is actually a successful method of reaching the wider market where the visitors would appreciate the innovation in the promotion as argued by Laurence Mathew (2005). Threats:
1. Terrorism: The major threat is the element of disaster that can be caused by

terrorist attacks. The fact that Bagong Barrio Caloocan City is a pivotal location for terrorist attack is the major threat faced by any shop in Bagong Barrio Caloocan City.
2. New entrants and costs: The threat of new entrants in the market is a critical

element. This is also an increasingly concerning factor with the rapid deployment of the construction project for Bagong Barrio Caloocan City which not only increases the opportunities from development but also the threat of new entrants and stiff competition in the target market.

From the analysis above it is clear that even though there are potential threats and certain weaknesses in starting a Sweet Shilenes Leche Flan at the Robinsons Place Ermita, the strengths and opportunities are out performing the weaknesses and threats thus justifying the investment for a new Sweet Shilenes Leche Flan in Robinsons Place Ermita.

DEMAND AND SUPPLY DEMAND

Based on the data gathered, the past demand shows an increase from 68,850 in 2010 to 76,260.00 and has annual average increase of 2.58%. Year Y X X2 EXY

2010 2011 2012 2013 2014 EY= SOLUTION: Yc = a+ bx Where: A = y/n

68,880.00 69,700.00 71,340.00 73,800.00 76,260.00 359,980.00

-2 -1 0 1 2

4 1 0 1 4 10

-137,760.00 -69,700.00 0 73,800.00 152,520.00 EXY= 18,860.00

= 359,980/5 = 71,996 B = xy/x2

= 18,860 / 10 = 1,886 Yc = 71,996 + 1,886x

Project demand Year 2010 2011 2012 2013 2014 X 3 4 5 6 7 EXY 77,654 79,540 81,426 83,312 85,198

The proponents use statistical straight line method to project the demand for five years. The projection shows that the demand of Sweet Shilene Leche Flan in an

Eggshell has annual increase of 2.35% and it increases from 77,654 in year 2005 to 85,198 in year 2009.

C. Supply

The table is presented to determine the supply of Sweet Shilenes Leche Flans in Bagong Barrio Caloocan City. The supply shows that the past supply of Sweet Shilene Leche Flan in an Eggshell increased from 52,137 in 2001 to 61,664 in 2005, with an average annual increase of 4.31%. Past supply of Sweet Shilene Leche Flan in an Eggshells Year 2010 2011 2012 2013 2014 Supply 37,741 39,654 40,054 42,111 44,046 Supply 52,137 55,516 56,076 58,955 61,664

Projected supply of Sweet Shilene Leche Flan in an Eggshells

Year 2010 2011 2012

Y 52,137 55,516 56,076

X -2 -2 -2

X2 4 4 4

EXY -104,274 -55,516 0

2013 2014

58,955 61,664 EY=284,348

-2 -2

4 4 10

58,955 125,528 EXY=22,493

Solution : Yc = a + bx Where: A = y/n = 284,348 / 5 = 56.870 B = xy / x2 = Yc Year 2010 2011 2012 2013 2014 22,493 / 10 = 2,249

= 56,870 + 2,249x X 3 4 5 6 7 Yc 63,617 65,866 68,115 70,364 72,613

The proponents used statistical straight line method in projecting the supply for the next five years. The period supply for Sweet Shilenes Leche Flans in Bagong Barrio Caloocan City. This shows an increase from 63,637 in 2005 to 72,613 in 2009 and having an average annual increase of 3.36%, Demand and supply analysis, demand/supply gap As a result f an average annual increase of 2.58% in past demand and an average of 4.31% increase in supply for sweets shop, still it is very insufficient to satisfy the demand of Sweet Shilenes Leche Flans in Bagong Barrio Caloocan City. . The demand and supply gap analysis shows that the supply cannot meet the

increasing demand of Sweet Shilenes Leche Flans in Bagong Barrio Caloocan City, the percentage of unsatisfied was presented in the table below. Year demand supply demand unsatisfied demand

and supply gap 2010 2011 2012 2013 2014 68,880 69,700 71,340 73,800 76,260 52,137 55,516 56,076 58,955 61,664 16,734 24.31% 14,184 20.35% 15,264 21.40% 14,845 20.12% 14,596 19.14%

Demand and supply analysis

The demand and supply gap analysis from the past gap analysis shows the unsatisfied consumer of Sweet Shilenes Leche Flans in Bagong Barrio Caloocan City, since 2010 having 54.31% to 19.14%. but by entering into the business to contribute the proponents share the unsatisfied consumer and will tend to drop form 18.08% in 2010 to 14.77% in 2012.

Projected Year demand

Projected demand supply and supply gap

unsatisfied demand

2010 2011 2012 2013 2014

77,654 63,617 79,540 65,866 81,426 68,115 83,812 70,364 85,198 72,613

14,038 13,674 13,311 12,448 12,585

18.08% 17.19% 16.36% 14.85% 14.77%

CHAPTER III THE MARKET STUDY Demand of product Based on the research, leche flan has evolved into one of the worlds most popular desserts, thats why the demand for this is very promising.

Price of the product leche flan has chosen for the study because It has proven its worth in terms of taste. The product will surely be liked by the consumers. The price is considered to be cheaper that other dessert such as sansrival, cake, and merangue. It would only cost a customer P35.00 for a leche flan in an egg shell. Since Bagong Barrio is as one of the known place in Metro Manila, the location is considered as advantage. The area is one of the most desirable locations.

The marketing program for the product Leche Flan is situated in the area not high traffic count because it is located at Bagong Barrio Caloocan City, which has a great advantage in achieving the kind of atmosphere the business would like to have. Based on the market analysis, the product has an edge over its competitors. Because it capitalize on its unique concept and its flavors gives reference to the children imagination by which art, together with other children parts, is created. Organizational Chart

PROPONENTS

Staff

OVERALL OBJECTIVES To lend its continuity and vitality in producing delicious and nutritious leche plan in an egg shell compare to any shops existing today.

SPECIFIC OBJECTIVES To Provide customers with a unique taste of leche plan in an egg shell To grow at a profitable rate to create employment To maintain healthy ingredients for personal wellbeing T o e s t a b l i s h n e w s t a l l e v e r y 2 ye a r s

CHAPTER IV MANAGEMENT OF THE STUDY Logo and Description

This is the chosen logo because it shows the product itself, the leche flan in an egg shell. It is considered to be a mouthwatering

photo that consumers would surely like to taste and will be very a f f o r d a b l e f o r e v e r yo n e . Job titles

Proprietress Responsible in the over all operation of the business from Marketing to Book keeping to Management

operation. Server Responsible for sales remittance.

Do assigned tasks and assignment given by the manager. Do the end line jobs in the operations. Plant Lay-out 30sqm

I.1.

OTHER MARKET INFLUENCES

Desserts like leche plan in an egg shell are extra little something at the end of a meal that just screams luxury and decadence. Its a little bi of self indulgence that make us feel good. U n f o r t u n a t e l y, m o s t d e s s e r t s a l s o r e l y h e a v i l y o n s u g a r o r o t h e r ingredients that we know arent good for us. That good feeling quickly that it turns into guilt leche plan in an egg shell is a sweet concoction made with milk and egg yolks. time if we could make Well, the thought of making each tiny leche plan in an egg shell just seemed too much

work. leche plan in an egg shell would be easier. Same taste, same texture but with a unique wrapping in an egg shell. The essence of e- commerce in our research is rapidly growing business that most people are now eager to run with. As the Internet has covered almost all the world including every nook and corner, people now can connect with the opposite pole within a few second at minimum price. So, the marketing through internet has become easy and any product of any place is available everywhere. It means your business can spread worldwide in short span. More and more businesses owners are going for online business as it can bring more potential clients to them. For any kind of product, whether it is medi cina l, home appliance or clothing, yo u

can view your required the items from home with the help of I n t e r n e t m a r k e t i n g w e b s i t e s a n d p l a c e o r d e r f o r t h e i t e m s yo u w a n t . A n d o n t i m e , y o u w i l l g e t t h e p r o d u c t s a t yo u r t h r e s h o l d . MARKETING STRATEGY As the customers today are smarter than before, they like to have different kind of things from different part of the world. Internet marketing has made it easy and sitting at home, customers can search for the products they want to buy and can order it. Before g o f o r b u yi n g i t , c u s t o m e r s c a n v i e w t h e p r o d u c t . I n c l u d i n g a l l t h e facilities and convenience that both the customers and the business owners may get from the e-commerce marketing, there is much importance of online marketing. QUALITY ASSURANCE These quality standards will be based on customer

expectations with regard to: Performance Product life when properly used and maintained Safety of use Appearance The Quality Assurance Program will integrate all

functions of the company is a coordinated, responsive, and efficient effort to achieve this quality goal by:

Maintaining high standards in purchasing raw materials and components.

Continuing

to

improve

our

manufacturing

facilities

equipment and methods. M a i n t a i n i n g a q u a l i t y a s s u r a n c e o r g a n i z a t i o n a n d s ys t e m which will assure quality products at optimum costs. The Quality Assurance organization shall have the primary responsibility for measuring quality and providing quality

motivation; however, quality consciousness is to be an integral part of the activities all of each department of within are the to company. continually

Consequently

members

management

stimulate and encourage commitment on the part of all employees to f u l f i l l t h e c o m p a n y' s p o l i c y . T h i s c o m m i t m e n t w i l l b e d i r e c t e d toward the following priorities: Quality products and services On-time delivery Cost

Projected financial statement Table 1.6 Shows the Projected Balance Sheet of Sweet Shilenes 2012 Assets 2013 2014 2015

Current Assets Cash Prepaid rent Merchandise inventory Total Current Assets 692,570.00 1,461,891.00 2,299,792.10 3,213,665.71 8,410.00 9,251.00 10,176.10 11,193.71 654,160.00 30,000.00 1,422,640.00 30,000.00 2,259,616.00 30,000.00 3,172,472.00 30,000.00

Fixed Assets Machineries and equipment Less: Accu. Depreciation Total Fixed Asset 9,320.00 9,320.00 9,320.00 9,320.00 2,200.00 2,200.00 2,200.00 2,200.00 11,520.00 11,520.00 11,520.00 11,520.00

Total Assets

Php715,610.00

Php1,484,931.00

Php2,322,832.10

Php3,236,705.71

Liabilities and

715,610.00

1,484,931.00

2,322,832.10

3,236,705.71

owner equity

Projected Balance Sheet Table 1.6 Shows the Projected Balance Sheet of Sweet Shilenes 2012 Assets 2013 2014 2015

Current Assets Cash Prepaid rent Merchandise inventory Total Current Assets 654,160.00 30,000.00 1,422,640.00 30,000.00 2,259,616.00 30,000.00 3,172,472.00 30,000.00

8,410.00

9,251.00

10,176.10

11,193.71

692,570.00

1,461,891.00

2,299,792.10

3,213,665.71

Fixed Assets Machineries and equipment Less: Accu. Depreciation Total Fixed Asset 11,520.00 2,200.00 9,320.00 11,520.00 2,200.00 9,320.00 11,520.00 2,200.00 9,320.00 11,520.00 2,200.00 9,320.00

Total Assets

Php715,610.00

Php1,484,931.00

Php2,322,832.10

Php3,236,705.71

Liabilities and owner equity

715,610.00

1,484,931.00

2,322,832.10

3,236,705.71

E.) Financial Analysis

Profitability Net Profit Margin = Net income after tax Sales

T a b l e 1 . 7 S h o w s t h e N e t P r o f i t M a r g i n o f Sweet Shilenes Year 1 P287, 040 672,000 .43 Year 2 P331, 520 739,200 .45 Year 3 P373, 024 813,120 .46 Year 4 P418, 144 894,432 .47 Year 5 P478, 542 983,875 .49

Operating Profit Margin = Profit before taxes

Sales

T a b l e 1 . 8 S h o w s t h e O p e r a t i n g P r o f i t M a r g i n o f Sweet Shilenes Year 1 P358, 800 672,000 .53 Year 2 P414, 400 739,200 .56 Year 3 P466, 280 813,120 .57 Year 4 P522, 680 894,432 .58 Year 5 P598, 178 983,875 .60

Gross Profit Margin = Gross Profit Sales

T a b l e 1 . 9 S h o w s t h e G r o s s P r o f i t M a r g i n o f Sweet Shilenes Year 1 P268,320 672,000 .40 Year 2 P295,152 739,200 .40 Year 3 P324,667.2 813,120 .40
23

Year 4 P357,133.92 894,432 .40

Year 5 P392,847 983,875 .40

Sources of financing the project From Savings accounts From parents P30, 000.00 35, 000.00 P65, 000.00 Projected Cash Flow Table 1.5 Shows the Cash Flow of Sweet Shilenes 2012 Cash Receipts from operation Cash Disbursements Purchases Salaries Rent Bonus Misc. Taxes and licenses Income tax Net Cash 71, 760 712, 960 82, 880 768,480 93, 256 836, 976 104, 536 912, 856 119,636 985, 558 420, 000 67, 200 120, 000 5,000 12, 000 5, 000 462, 000 67, 200 120, 000 5, 000 14, 400 5, 000 508, 200 73, 920 120, 000 6, 000 15, 600 6, 000 559, 020 84, 000 120, 000 7, 000 16, 800 6, 500 614, 922 84, 000 120, 000 7, 000 18, 000 7, 000 P672,000 2013 P739,200 2014 P813,120 2015 P894,432 2016 P983,875

Cash Bal. beg. Cash Bal. end.

58, 800 654, 160

654, 160 1, 422, 640

1, 422, 640 2, 259, 616

2, 259, 616 3, 172, 472

3, 172, 472 4, 158, 030

Current operating expenses PERMITS AND BUSINESS REGISTRATION Barangay clearance Business permit (barangay) Business tax (local tax) Permit fees-Mayors permit PENRO Fire safety Sticker/Plate Health fee Sanitary inspection fee BIR DTI Total P 70.0 250.00 300.0 300.00 500.00 156.00 150.00 550.00 500.00 600.00 500.00 P3, 976.0

SOCIO ECONOMIC STUDY A) Employment Sweet Shilenes Contribution to social and economic development is primarily for the employment of the people specifically to the resident of Bagong Barrio Caloocan City. B.) Income Its ability to generate consistent profits will ultimately determine its worth in the market place. C.) Taxes With the taxes, Sweet Shilenes will pay to the Municipal Hall and BIR, it will be a part on building a progressive nation. D.)Supply of Commodities There is a large market for leche plan. Supply is likely promising. E.) Demands of Materials Demands for materials are considered adequate