Final Mrktg..docx

I. Executive Summary Food is the most established product of all time in the world of business. Banana-Oatmeal Pancake will provide a combination of excellent food and value of pricing with health benefits. Banana-Oatmeal Pancake is the answer to an increasing demand for bread-type but sugarless to be consumed during your break-time. In today’s highly competitive environment, it is difficult to differentiate one product to another. So, it is better to make something new that can benefit your customers.

Our proposed product will be sold in front of the Old main building at Saint Ferdinand College which is the only Catholic Educational Institution located in Ilagan City, Isabela.

In front of the old main Building is the perfect place to sell the product because our aim is to give them the benefits of our product especially for the staff, faculties and students. Pancakes are a natural choice when you want to treat yourself breakfast.

Banana-Oatmeal Pancake is a partnership business wherein the capital will come from the members and won’t have to hire workers because the partners themselves will take charge.

Here in Ilagan we don’t have any competing stores who sell the same product as we do. So that we shall give our customers the pancakes they won’t find anywhere else, a pancake they

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won’t forget. We will serve them the “mabango, masarap at masustansya”. Our pancakes will be worthy that shall going to known as one of the healthiest pancakes in the world.

Our Banana-Oatmeal pancakes are “mabango, masarap at masustansya”. Not only does it smell amazing but it’s also delicious and nutritious wherein you won’t think twice to buy. Our starting capital is 10000; 5200 for tools and property; 1200 for the license and the remaining cash is for the raw materials and other expenses.

We have considered learning institutions, other business and passer-by and walk-ins as the projected product could be sold. Saint Ferdinand College has more or less 500 total number of staff, faculties and students during the intramurals. We will also accept delivery and orders. In terms of promotion, we will give a free addition of syrup. we offer the best Banana-Oatmeal pancake in the campus. Our pancake will be P 8.00 per piece.

We have conducted our market Count and 10% will be our target market for our pancake with 60 persons which leads to a sale of P 480.00 a day. And 15% for our banana with 5 kilos and have a sale of P 60.00; 15% of oatmeal with 1000 grams and have a sale of P 60.00 a day.

The product will provide socioeconomic aspects: (1) Gives better quality of life (2) Give benefits to environment.

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II.

Study Background A. Introduction Food is the most established product of all time in the world of business. Banana-

Oatmeal Pancake will provide a combination of excellent food and value of pricing, with health benefits. Banana-Oatmeal Pancake is the answer to an increasing demand for breadtype but sugarless, to be consumed during your break-time. In today’s highly competitive environment, it is difficult to differentiate one product to another. So, it is better to make some new that can benefit your customers.

Saint Ferdinand College is the only Catholic Educational Institution located here in Ilagan City, Isabela. It is one of the leading educational Institution in Isabela duly recognized by the Commission on Higher Education (CHED) and Philippines Association of Colleges and Universities Commission on Accreditator its formal operation in the School Year 1951-1952 up to now with classes offering from Kindergarten to College Level.

At present, Saint Ferdinand College has one satellite campus in Cabagan in the same province.

In front old the Old main building is the perfect place to stall the product. Most students passing the building will notice smell of the pancake. I don’t think someone will find the Banana-Oatmeal pancake tasteless after they taste one. We can pair the pancake with our 3|Page

coffee in the morning, or while taking your coffee break in your office and even in your lunch or during your dinner when you are on a diet.

The stall location of our proposed product would be along the pathway to be convenient for our customers.

B. Mission and Vision MISSION One of the most sought product for it serves the most nutritious, delicious and beneficial food at affordable price with quick service. We always maintain a strong relationship of trust and strict standards with our supplier and customer. VISION To build and maintain a customer-oriented culture that will encourage and nurture service excellence through cleanliness, quality and value to most the expectations of our customer. Building a friendly environment where customer would love to eat.

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C. Product/service offerings

Banana-Oatmeal Pancakes Add ons: Crushed Banana Maple Syrup Chocolate Syrup Buy 3 free 1 add ons.

III.

Opportunities and Threats The demand of the staff, faculties and students as of the 2nd day of selling increased to

60 pieces of sold product from 60 pieces in the 1st day. This is also considered an opportunity because increase in demand can also be an increase in profit.

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IV.

Microenvironmental Analysis

A. The Product Our product is made up of banana, oatmeal, eggs, cinnamon and vanilla mixed together to make a pancake with syrup toppings like chocolate syrup and condensed milk. B. Suppliers Our main suppliers are from the public market for the banana and for the other ingredients are from SaveMore Supermarket Calamagui 2nd branch. C. Marketing Intermidiaries SUPPLIERS

BOOTH/STALL

CONSUMERS

(Public Market, Savemore supermarket)

(Located at St. Ferdinand College- Ilagan Campus)

(SFC students, teaching and non-teaching staaffs)

D. Customers Our customers are the students, teachers and non-teaching staffs of Saint Ferdinand College- Ilagan Campus. E. Competition Pastry/bakery businesses around area. F. Publics We, Filipinos are after the quality and benifits of the food we eat and our product is perfect for it for it is nutritious and delicious in affordable price.

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V. Strengths and Weaknesses Strength 

The product is new in the area.



Affordable price with health benifits

Weaknesses 

Lack of experience when it comes to business.



The price may lead the buyer doubdful for they will think that we can’t give them the full benifit of the product.

VI.

The Market

A. Market Size

PLACE

POPULATION

SFC, IECS

3000

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TARGET MARKET (6%) 180

EST. # OF PRODUCTS TO BE SOLD(1:2) 360

B. Market Needs 

New product



Insists upon a clean, friendly, and attractive environment



Wants variety and new flavor

C. Market Trends

Chart Title 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

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VII. Marketing Objectives 

To be known 100% in campus a best seller of health benefits pancakes by the end of the month October 2018.



Put up our own pancake house.



To be able to discover our own flavor of coffee that is a perfect pair to the pancake.



Increase sales for about 10-15%.

VIII. Marketing Strategies A.

Product/service strategy 1.

Target market

Students in campus during Intramural

500

By gender:

By marital status:

Male Female Single Married

39.9% 61.1% 73.5% 27.5%

Below 12 12 - 16 17 - 20

30.6% 25.3% 16.7%

By Age:

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20 above

500 x

37.4%

Students in campus during Intramural .611

(decimal equivalent of the percentage of the total number of students who are female)

x

1.00

(decimal equivalent of the percentage of the total number of students who are single and married )

x

.0683

(decimal equivalent of the percentage of the total number of students who are below 12 and above 20)

209

Target market size

2.

Brand positioning

“Mabango, masarap at masustansya.” Banana-Oatmeal pancake is known as nutritious pancake. Not only is it satisfying but it’s also good for our system. Just the smell alone can make you wanting more. B.

Pricing strategy P 8.00 each and free add-ons

C.

Distribution strategy You can avail our free delivery when inside the school campus. You will

add a delivery fee when more or less in 100 meter away from the stall location. 10 | P a g e

D.

Promotions strategy For every three (3) pancakes there is a free ons.

IX. Tactical Implementation Tactics

Operating Details

Timetable

Stall will be located in

To accommodate the customers

September 2018

front of Old main building

walking along the pathway

Promoting new flavor of

To satisfy and give enjoyment to

pancake

customers

Open new stall to be locate To share the hidden nutritious in some other school here

pancake of an ABM students of St.

in Ilagan

Ferdinand College

X. Marketing Budget

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January 2019

June 2019

Marketing Budget, 2018 Point of purchase materials

P 5561.00

Advertising expense

P 150.00

Sales Promotion

P 120.00 Total

P 5831.00

XI. Feedback and Control The final tally of the survey is rated 4.1 over the average of 5 points. We will provide other choices of sauce/toppings because it is the one that is rated low.

XII. Financial Projections Major Assumptions: 1. As projected in the market count, we assumed that the possible customer will be 180 and will buy 2 pieces of pancake per day with a Pancake sale of P 2,880 a day, 57,600 a month and P 691,200 a year. 2. The sales for the product will increase by 8% for the second year and 10% for the third year.

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3. Compensation for the seller is based on commission of 1 peso per piece of the product. 4. Depreciation expense is based on 3 years useful life. 5.

Rent expense is constant for the amount of 4,800 a year.

6. Utilities expense is projected for the amount of 6,000 fpr the first year and will increase by 8% for the second year and 10% for the third year. Pre-Operating Balance sheet

7. Advertising expense is based on 0.6 for each leaflets for the total of 2000 leaflets per year with a total cost of P 1,200. 8. Business permit expense is amounted of 1,200 a year.

Pre-Operating Cash Flow Cash Receipts Initial Investment

15,000 Cash Disbursement

Utensils and Equipment Balance

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6,000

(6,000) 9,000

Asset Cash

9,000

Utensils and Equipment

6,000

Total Asset

15,000 Liabilities and Capital

Liabilities

0

Capital

15,000

Total Liabilities and Capital

15,000

Income Statement 2018 Sales Cost of Sales Gross Profit Less: Operating Expense Commission Expense Utilities Expense Rent Expense Depreciation Expense Advertising Expense Business Permit Total Operating Expense Net Income

2019

2020

691,200 473,472 217,728

746,496 511,349.76 235,146.24

821,145.6 562,484.74 258,660.86

86,400 6,000 4,800 2,000 1,200 1,200 (101,600) 116,128

93,312 6,480 4,800 2,000 1,200 1,200 (108,992) 126,154.24

102,643.2 7,128 4,800 2,000 1,200 1,200 (118,971.2) 139,689.66

Statement of Cash Flow 2018

2019

2020

691,200

746,496

821,145.6

473,472

511,349.76

562,484.74

86,400

93,312

102,643.2

6,000

6,480

7,128

Cash Flow from Operating activities Receipt Sales: Disbursement: Ingredients Commission Expense Utilities Expense

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Rent Expense

4,800

4,800

4,800

Advertising Expense

1,200

1,200

1,200

Business Permit

1,200

1,200

1,200

118,128

128,154.24

141,689.66

9,000

127,128

255,282.24

127,128

255,282.24

396,971.9

Cash Inflow from Operating Activities/Balance Add: Beginning Ending Balance

Statement of Financial Position Asset 2018 Cash Utensils and Equipment Accumulated Depreciation Total Asset

127,128 6,000 (2,000)

Retained Earnings/Net Income Total Owners Equity

2020

255,282.24 6,000 (4,000)

396,971.9 6,000 (6,000)

257,282.24

396,971.9

0 15,000

0 131,128

0 257,282.24

116,128 131,128

126,154.24 257,282.24

139,689.66 396,971.9

131,128 Capital And Liabilities

Liabilities Capital

2019

Financial Ratio 2018 Gross Profit Ratio Operating Profit Margin Net Profit Margin Return on Assets

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2019 31.5% 16.8% 16.8% 88.5%

31.5% 16.9% 16.9% 49%

2020 31.5% 17% 17% 35.2%

Initial investment Utensils and Equipment Business Permit

15,000 6,000 1200

(7,200) 7,800

Cash

9,000

Utensils and Equipment Capital

6,000 15,000

Ingredients 30kls. Banana (500g x 6 pcs.) Oatmeal 90 pcs. Egg 300 ml Vanilla Cinnamon 6 Chocolate Syrup 3 Condensed Milk Packaging Total

Production Cost Order per day 1,974/ 360=5.48 Production cost per/unit 5.48

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330 384 225 72 216 510 87 150 1,974

Production Cost/year

5.48 x 360 units x 20 days x 12 months =473,472

Sales Price per unit

8 pesos

Per day

360 x 8 =2,880

Per year

360 x 20 days x 12 months x 8 =691,200

Rent Expense Daily Monthly Yearly

20 20 x 20 days=P 400 400 x 12 months=P 4,800

Depreciation Expense Tools 200/3 years=66.67 Blender 1,800/3 years= 600 Toaster 4000/3years= 1,333.33 Depreciation Expense/year 2000

Utilities Expense Monthly Yearly 17 | P a g e

500 500 x 12 =6,000

Commission Expense(P1 per piece) Unit Sales a Month 360 x 20 = 7200 Unit Sales a Year 360 x 20 x 12= 86,400

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