I.

Summary of the Project

A. Name of Firm – TBA
B. Location – Iloilo Business Park
C. Brief Description of the project

With the growing concern on health, there is a need for a business that offers
this demand. The team proposes a business that offers extensive gym services. This
gym will offer a space for its clients to work out and a café to provide healthy food
to ensure his healthy lifestyle.

The team proposes to create a partnership with three partners. One will serve as
the managing partner.

Gym

Fitness clubs or fitness centers, more commonly known as “gyms” here in the
Philippines are venues that house exercise equipment where people can exercise
and get fit. Gyms have increased in popularity over the past years and have a wider
target market because more and more Filipinos are becoming health conscious and
choose to live a healthier lifestyle by combining physical exercise and a healthy
diet. This is mainly because of the increasingly faster pace of life, where individuals
are often busy, and the proliferation of unhealthy food that has led to more diseases,
increased stress, lower energy levels, and generally unhealthy lifestyles. Nowadays,
individuals must make a conscious decision to keep themselves healthy despite
their busy schedules and that’s often where gyms provide a solution.

Gyms vary in size and are often located at convenient places accessible from
schools or offices, and they provide a place where people can be motivated to
exercise and be guided on how to exercise properly. They offer a main workout
area, which mostly has free weights such as dumbbells, barbells and often includes
mirrors so that exercisers can monitor and maintain correct posture during their
workout. A cardio area includes varied cardiovascular training-related equipment
such as rowing machines, stationary exercise bikes, elliptical trainers and
treadmills. Some gyms also offer group exercise classes that are conducted by
certified fitness instructors or trainers. There are various types of group exercise
classes based on aerobics, cycling, boxing or martial arts, high intensity training,
step yoga, regular yoga and hot yoga, pilates, muscle training, stretching, and self-
defense classes such as Krav Maga and Brazilian jiu-jitsu. In the Philippines, the
common group exercise classes are Zumba, Crossfit, yoga, and HIIT (high intensity
interval training). Most gyms employ personal trainers who are accessible to
members for training/fitness/nutrition/health advice and consultation. Personal
trainers can devise a customized fitness routine, sometimes including a nutrition
plan, to help clients achieve their goals. They can also monitor and train with
members. Gyms offer their services for a monthly membership fee, walk-in fee, or
other similar payment bundles and depending on the gym, access to personal
trainers may be included in the membership fee or involves an additional hourly
fee.

Café

Coffeehouses, coffee shops or more commonly known as cafés are

establishments which primarily serve hot coffee, related coffee beverages such as
café latte, cappuccino, espresso, tea, and other hot beverages. Some coffeehouses
also serve cold beverages such as iced coffee and its many variations, iced tea, and
“frappes,” which are iced blended drinks with either a coffee or crème base. Many
cafés also serve some type of food, such as light snacks, muffins or pastries.
Coffeehouses range from owner-operated small businesses to large multinational
corporations. Coffee shop chains like Starbucks became prevalent in upper and
middle-class professionals especially in busy cities. Karinderias also serve coffee
alongside viands and events such as "Kapihan" are often officiated at bakeshops
and restaurants that also serve coffee for breakfast and merienda.

In the Philippines, the cafés evolved from simply being places where you can
buy and enjoy a cup of coffee to become places that cater to students, businessmen,
yuppies, and everything in between. Nowadays cafés serve an elaborate array of
coffees, other specialty drinks food, and a variety of other amenities such as fast
WiFi connection, comfortable sitting areas, or even incorporating themes from
 popular culture to attract customers. Most coffee shops have a cozy atmosphere
where people can sit for hours and sip their coffee. They provide an alternative
place where students, freelancers, and professionals can get their work done with
the help of caffeine and ambient noise. They provide a place for social interaction
or productivity and the much-needed caffeine of busy lifestyles.

The current trend of practicing a healthier lifestyle led to the rise of

establishments that offer healthy meal options made from fresh produce and less
preservatives. These establishments offer nutritious and delicious food, catering not
only to health-conscious individuals but also to those who want to eat good food.
However, coffee shops geared towards the health conscious are not as common,
due to the popularity of coffee products with whipped cream, toppings, and a lot of
sugar.

Coffee shops that cater to individuals who pursue a healthy lifestyle and
exercise regularly would provide delicious food and drink options that provide the
energy and nutrition needed by these individuals. Such a café would also provide
an avenue to meet similar-minded individuals that would provide encouragement
and inspiration to each other.

D. Organization and Management

 Cafe

Other Managing
Partners Partner

Employees

Cafe Gym
Employees Employees

II. Economic Aspect

A. Demand

i. General Market Description

Demographics
Age: 20-60
Income: 250,000 pesos per year or more. Our goal is for even the high
school student in the middle class to be able to afford our gym.
Sex: 52% female, 48% male
Education: High School Degree or higher
Business Customer: Our business customers will be local athletic teams
who would like to have personal trainers.
Geographic Parameters: The majority of customers will be living within
20 miles of our gym, however some customers could live farther out than
that because of our gym's easy access in the Megaworld area in the city
which is will become one of the premier destinations in Iloilo City
Size of the Market: There are already many different established gym in
Iloilo city namely in the Jaro district, Plaza Libertad, City Proper and
General Luna Street. However there are no Gyms that are located near the
Diversion area or in the Megaworld area which are the top 2 commercial
destinations which people usually go to. So we are expected to pull in a
large majority of these areas and most of the people that go to these areas
belong to the higher class of the population which perfectly matches our
demographics.
Market Segmentation:
50% of customers: Ages 24 - 35. These customers are out of school but are
not yet making large salaries at the jobs they have. They can afford our gym,
and are interested in staying fit and active. They have the time and energy
to be able to be an active customer at the gym.
30% of customers: Ages 18-20. These customers are still in high school.
They have the time on their hands to be able to come to the gym on a regular
basis, and have interest in it. They also have summers off that they can
spend money on and will have more time. This creates potential for an
increase in customers during the months of April through June and
December through to January.
20% of customers: Age 35+. These customers most likely are living a stable
life. They already have their job and most have a family. The Gym is easy
access for their busy life due to the convenient location. As people get older,
 they become less motivated to work out, so they are our smallest market
segmentation

ii. Projected Consumption for the next 5 years

The country’s total health expenditures grew from Php 593 billion in 2015
to Php 655 billion in 2016 or by 10.5 percent at current prices. The contribution
to Gross Domestic Product (GDP) was at 4.5 percent.

Total health expenditures comprised of current health expenditures (CHE)

and health capital formation expenditures (HK). HK in government sector
accounted for 3.7 percent of the Total Health Expenditures (THE). It is expected
to increase in the next five years.

iii. Supply – Gianne and Jeszel

1. Source of Supply
2. Factors affecting trends in the past and future supply
iv. Competitive Position – Jeszel
III. Marketing Program
A. Product and Price
i. GYM SERVICES

Gym services offers regular services and special services. For regular
services, the clients are expected to do their own routine. For special services, the
gym will provide professional gym services for its clients

Gym services will be at the price of Php 1,500 per month for regular service
and Php 3,000 per month for special clients with personal trainers. Prices may
increase in the near future.

The gym also accommodate walk-ins and provide sessions such as zumba
classes.

ii. Café Services

BEVERAGES
I. Healthy Water
Cost Price
Kangen Fitness Water (1L) 70 100
Still Water (500mL) 70 100
Sparkling Water (500mL) 80 120
Hydrating Coconut Water 120 160

II. Coffee
** Pre Work-out Coffee 130 175
(Double Expresso, Coconut
oil, Honey, Cacao, dash of
Almond Milk)
** Protein Coffee ( Almond 220 300
Milk, Double Shot Coffee,
Cacao, Chocolate Protein)
Expresso 50 80
Cappuccino 50 80
Americano 50 80
Latte 50 80
Coffee with milk 70 100

Coffee with 70 100

Almond/Coconut/Soya Milk
III. Tea
Bio Matcha Tea w/ Ginger, 80 125
Lemon and Turmeric
Black Tea 50 80
Green Tea 50 80
Peppermint Tea 50 80
Red Tea 50 80
Camomole 50 80
** Tips with Milk 70 100
Organic Pukka Tea 70 100
Add ons: Lemon grass, 20 30
Ginger, Jaesmine Green,
Ginseng, Matcha Green,
Cinnamon, Turmeric
IV. Protein Shake
Advanced Formula Protein 175 250
Shake (Banana, Vanilla
Strawberry, Chocolate,
Chocolate Mint, Peanut
Butter)
Add ons: Almond Milk, 30
Banana, Breakfast Oats

V. Juices
** Power Shot ( Ginger, 125 175
Apple, Wheatgrass, Ginger,
Pineapple, Lemon, Turmeric,
Matcha, Almond Milk,
Algave Syrup)
** Liver and Colon Tonic 175 250
Detox (Spinach, Banana,
Pineapple, Grapes, Kangen
Water)
** Skin Vitamina (Carrot, 175 250
Orange, Apple, Cucumber,
Flax seeds, Ginger)
** Daily Greens (Spinach, 175 250
Celery, Apple, Cucumber,
Lime, Spiralina)
** Immune Boost ( Spinach, 175 250
Banana, Orange, Pineapple,
Goji Berries, Kangen Water)
** Energy Fix (Kale, Banana, 175 250
Apple, Blueberries, Walnuts,
Acai Berries, Kangen Water)
** Remedy ( Carrot, Apple, 175 250
Beetroot, Lime)
FOOD
 I. Breakfast
Grilled Big English breakfast 350 450
( 2 eggs, 2 rashers of bacon, 2
sausages, tomato, baked
beans, mushrooms, sweet
potato hash, 1 toast)
Grilled Small English 200 300
breakfast (1 egg/ avocado, 1
sausage, spinach tomato,
baked beans, mushroom,,
sweet potato hash, 1 cereal
toast)
Grilled Veggie/ Vegan 200 300
breakfast (1 egg/ avocado,
sausage, spinach tomato,
baked beans, mushroom,
sweet potato hash, 1 cereal
toast)
Smoked Salmon, 2 scrambled 300 420
eggs, spinach, toast
Porridge oats with almond/ 240 350
semi skimmed milk and fruit
selection
Organic Acai Bowl 380 500
Protein Pancakes 200 300

II. Wrap it Up
Tender Chicken Wrap w/ 200 300
Avocado, Spinach, Egg, **
Juice
 Vegan with hummus, quinoa 200 300
salad, avocado, roasted
beetroot, lettuce
Strips of peppered steak with 200 300
agave mustard sautéed
onions, spinach and
mozzarella cheese
III. Salad
Vegan Kale salad with 300 420
avocado, chilli, peas, peppers,
walnutsm quinoa, cherry
tomatoes, ** house dressing
Tuna Fuel (Seared Tuna, 300 420
beans, bean sprouts, carrots,
cabbage, avocado, pepper,
lettuce, noodles, ginger, mayo
dressing)
Super food (Spinach, 300 420
Avocado, beetroot, seaweed,
cucumber, quinoa salad, goji
berries, feta cheese, mint
dressing)

B. Place
The location is conducive to the target market of the business which are young
professionals, college students and health conscious individuals. The place is accessible
and is center to different businesses and is near schools and residential areas in the city.
C. Promotions
The gym will utilize a personalized promotion and selling strategy. In order
to reach the primary market, which consists of college and high school students and
middle income families, sales representatives will visit the surrounding colleges
 advertising the membership benefits and employment opportunities, through the
use of multiple interest tables around specific areas on campus. The college
promotion strategy would, however, be concentrated primarily during the
beginning months per each semester. Another form of advertising that the gym will
use to reach its primary market is through print advertising, directed especially
toward the middle income families and high school students. Brochures will be
distributed at least monthly to Ilonggos. Students will also be reached through
sponsoring of local athletic association sporting teams and events. Ads and flyers
depicting the product will be placed around campus and in university news
publications in order to reach additional students who may not have been reached
with the on campus sales representatives. The secondary market, which consists of
local small and medium sized businesses and retirees, will be reached through
different promotional techniques. Business consumers will be reached by corporate
trade shows and directly through meetings and individual presentations with sales
representatives to support awareness the facilities advantages and service quality.
The use of print advertising will also be used to target these potential future
customers. Brochures will be mailed to certain businesses and flyers will be posted
around local stores. The gym will publish print advertisements in area and business
journals and newspapers. Another advertising strategy that will be used to reach the
secondary market individuals is through sponsoring local town activities and
programs that primarily attract older ilonggos. After getting the business started,
with a defined reputation, the gym will tend to rely mostly on .word-of-mouth.
advertising to reach additional customers and to help promote the gym and in turn
increasing sales revenue.
IV. Technological Feasibility
A. Products/Services
i. Copy paste lang pero wala cost.
B. Process
i. Membership
 Signs Chooses Attends
Payment
forms program Session

ii. Supply of Inventory

Checks Orders Receive

Delivery
Inventory Inventory Inventory

iii. Café

Line Up Orders Deliver

iv. Walk-ins

Payment Gym Session

C. Location and layout

Gym Café is to be located in the 72-hectare township that is envisioned to be ‘the
next central business district’ in Iloilo City. Megaworld is investing P35 billion for its
development in the next 10 years, its biggest and exciting venture in Western Visayas.
Iloilo Business Park will see the rise of luxury residential condominiums, state-of-
the-art BPO office towers, a Megaworld Lifestyle Mall, a boutique hotel and
commercial district, the 1.1-kilometer Festive Walk commercial and retail strip, open
parks, transport hub, and the much-anticipated Iloilo Convention Center, among others.
D. Facilities, Machinery, Equipment, Furniture and Fixtures, Cutlery
1. Cardiovascular training machines and equipment
a. Treadmill (2)
b. Elliptical Crosstrainers (2)
c. Rower (1)
2. Strength training machines and equipment
a. Five Stack Jungle Gym
b. Selectorized Multi-Hip
c. Counterbalanced Smith Machine
d. Adjustable Bench
e. Olympic Flat Bench
f. Adjustable Decline Sit-Up Bench
g. 45 Degree Hyperextension
3. Group fitness classes
a. Strength and Conditioning
b. Cardio
c. Yoga
d. Zumba
4. Other amenities and services
a. Lockers
b. Shower Room
c. Personal Training
d. Parking area

Item Quantity Price Total

Gym Package 1 Php 1,650,000.00 Php 1,650,000.00
Yoga Mats 10 Php Php
2,000.00 20,000.00
 6-Door Steel 5 Php Php
Locker 11,000.00 55,000.00
Stability Ball 5 Php Php
400.00 2,000.00
Jump Rope 5 Php Php
200.00 1,000.00
Laptop 1 Php Php
25,000.00 25,000.00
Audio System 1 Php Php
8,000.00 8,000.00
Total Php 1,761,000.00

1. Automatic Drip Coffee Makers

Since standard, black coffee will account for some 30 percent of your store’s sales, you’ll want a
coffee maker that pulls its weight. What should you look for in a coffee maker? It should be
durable enough to produce a high quantity of coffee per day, quick enough to meet demand at the
busiest times for customers (usually mornings), and large enough to produce sizeable batches of
coffee so that you aren’t always brewing coffee throughout the day.

2. A High-Quality Espresso Machine

Many typical coffee drinks that your customers are likely to order have an element of espresso,
either by itself or in combination with steamed milk, so you’ll need an excellent espresso
machine. Unfortunately, the industrial espresso machine market is sprawling and some of the
higher quality machines can cause your budget for capital to skyrocket, so it’s important to
understand what makes a good espresso machine and how to shop intelligently to get the best
value when you land on the right one.
3. An Industrial Coffee Grinder

Since most coffee shops keep unground beans in inventory to account for the freshness of their
coffee, you’ll want to grind your own immediately before making a new pot. That means adding
an industrial coffee grinder to your coffee shop equipment list. People don’t typically realize that
the right grinder can make all the difference in the flavor profiles and the aroma of your coffee or
espresso. This is why it’s so important to invest in the right grinder.

4. Refrigeration System

When you open your coffee shop, you’ll have food to keep fresh and dairy products to
refrigerate. This requires refrigeration both in display cases and counter fridge units behind the
bar.

Refrigeration must be taken into consideration when you design your coffee shop. Other things
that must be considered in the design? It must be aesthetically pleasing but streamlined enough
for the baristas to quickly make customers’ drinks. Here’s our breakdown on how to achieve the
best coffee shop design.

5. Containers, Pumps and Assorted Miscellaneous

Since coffee shops necessitate the use of a large amount of beans and a huge selection of drink
toppings, you must have the hardware to effectively use and store these items. This means pumps
for all the syrups, boxes and crates to conveniently store coffee beans near your coffee makers,
and simple answers to all the storage issues that plague some coffee shops.

If you don’t have an effective system for storage, your business will run less efficiently, driving
you and your employees crazy, as well as diminishing profits over the long run. Partner with a
local or reliable restaurant supply retailer, buy in bulk and plan your system out carefully and
effectively.

6. Ovens, Toasters, and Devices Used for Cooking

If your coffee shop has a small selection of hot food, which one survey found is the case with at
least 60 percent of coffee and tea shops out there, you’ll need a reliable way to prepare your food
quickly, so as not to hold up the efficiency of your operation.
7. Security System

Every mercantile business needs an excellent system to deter crime in and around their business.
This may include security equipment such as cameras, burglar alarms (both in the coffee shop
and on the front and back doors). In addition, consider implementing systems for proper
oversight to prevent employees from helping themselves to too much of your product, giving
away too many complimentary drinks, or lifting cash from the register.

There are a wide variety of choices on the market for security products and surveillance
equipment. You’ll want to find a company that will oversee installation and has experience and
expertise preventing crime near your business. Profit loss from theft or other calamity is
something you don’t need as you enter the market with a new store.

8. Shelving

One of the most underrepresented and under-appreciated items on a coffee shop equipment list is
adequate shelving.

Most coffee shops sell merchandise, bulk coffee, mugs, and coffee equipment like french presses
and other accessories as a way to make additional money outside of the primary business of
slinging drinks.

Both in the public area of the store, and behind the counter for the convenience of the baristas,
shelving is a must. Convenient shelf units can be the difference between a coffee shop that
doesn’t have the space to allow much seating and appears cluttered and chaotic and one that is
aesthetically pleasing.
Additionally, if the baristas in your shop don’t have proper storage, essential items will have to
be stored farther away, hurting their ability to remain quick and efficient with customers.

9. Freezers and Cold Product Storage

If you do intend to follow the ever successful Starbucks model for food and drink combinations,
you’ll need freezers, both in the front of your coffee shop where your baristas work, as well as in
the back where inventory is stored.

A selection of frozen food that can be flash-baked in the oven should be kept up front for baristas
to have easy access for orders. Since frozen food is easy to store and has a long shelf life, you
should store a surplus in the back so you never run out.

10. A Few Industrial Blenders

In 2013, a consumer survey found that the recent market for blended drinks had grown by 20
percent. Today, it’s no secret that blended drinks, especially seasonal drinks, are all the rage
among coffee consumers. You’ll need at least one blender to capitalize on the blended frozen
drink craze.
12. POS System and Related Hardware

Without an efficient and reliable point of sale system, your business can be slowed down by lags
in payment processing, poor inventory management and untimely services and repairs. But if
your POS is cloud-based, you won’t have to worry about tracking your data or inventory because
the system will help you do it all. Luckily, cloud-based POS systems are not only lightning fast,
but reliable as well.

But these systems are so much more than bundles of software and hardware. In one ergonomic
terminal, you will also have the power to track your business’ analytics and profits, keep track of
inventory, and oversee email marketing to bring in new customers.

E. Utilities
Utilities will be provided by local distributors. PECO will provide
electricity while NAWASA will provide water. The business will aim to conserve
electricity and water by becoming environmentally friendly.
F. Waste Management
The proponents would identify options to:
  Reduce - can waste be avoided or reduced by the way your business obtains
goods and services or by changing the way it operates?
 Reuse - does another local business have a use for the waste materials you
produce?
 Recycle - what materials can be targeted for recycling?
We should try to secure the most appropriate collection arrangement for the
recoverable materials we produce to ensure that these segregated materials are really
used to minimize the disposal of our entity.

We would also implement the use of mugs for our dining customers instead of
cups so that we will be able to minimize wastes. We would also be giving incentives
to our customers who bring their own cups and metals straws for their take-outs. AS a
result, our consumers become increasingly aware of the negative consequences
connected with waste, smart coffee house managers are finding ways to reduce the
amount of garbage they produce – and as a consequence, cut costs, improve their
image and attract more customers at the same time.
G. Production Cost/Material and Labor requirement/inventory requirement
i. Che chei nyo lang di kun ano pira kinanglan ppl and kun ano ano nga
materials ang required. Hindi lang pagbutangi cost kay sa FS ta lang
butang.
V. Financial Feasibility - All
A. Capital Requirement and Sourcing (with detailed Figures)
i. Capital Assets
ii. Working Capital
iii. Sources of Financing and Cost
B. Financial Projections for the next five years
i. IS,SFP, CFS
C. Supporting Assumptions
i. WACC
ii. Forecasted Volume of Sales
iii. Target Rate

VI. SOCIAL IMPACT

When we think about the value of exercise, we tend to focus on its physical benefits such as
lower blood pressure, a healthier heart, or a more attractive physique. But over the past
decade, social scientists have gathered compelling evidence suggesting that another more
immediate benefit of regular exercise is its impact on the way we think. A study by Hogan,
Mata, and Carstensen (2013) reveals that our mental firepower is directly linked to our
physical regimen and its implications to our work performance. Incorporating regular
exercise into daily our daily routine results in cognitive benefits such as improved
concentration, sharper memory, faster learning, prolonged mental stamina, enhanced
creativity, and lower stress levels. Exercise has also been shown to elevate mood, which has
serious implications for workplace performance and enables employees to better build
interpersonal connections and foster collaborations.
A 2015 study by Werle, Wansink, and Payne also suggests that how we feel while exercising
can influence the degree to which it ultimately benefits our health. When exercise is viewed
as something we do for fun, we’re better at resisting unhealthy foods afterwards. But when
the same physical activity is perceived as a chore, we have a much harder time saying no to
fattening foods, presumably because we’ve used up our willpower exercising. It’s no secret
that eating habits play a substantial role in both short and long-term health and fitness.
Experts have been promoting the physiological benefits of healthy eating for years. What you
may not realize however is that a healthy diet can result in numerous social benefits as well.
Eat healthier and you might be surprised by some positive changes in your ability to manage
relationships and social situations.