Professional Documents
Culture Documents
MC Body
MC Body
Mark Count Drivemart Grocery also sees to it that its employees are trained and
motivated to be service-oriented individuals in order to maintain the practice of best
service to its customers and community, bearing in mind its five core values – Sense of
Belonging, Sense of Service, Dynamism, Commitment, and Loyalty and Integrity.
Executive Summary
1
Primarily, Markcount Drivemart offers various products that can be found similarly
in other grocery stores. The firm depends on the number of suppliers that the firm is
connected that offers at the least cost for the consumers. Products offered especially
foods that are perishable will be classified based on the categories in grocery stores for
an easier way of transaction. There will be a particular convenience fee for every
minimum number of purchases that will be charged on the consumers item transactions.
2
In terms of capital and start-up costs, MC DriveMart Grocery has an estimated
amount of Php 90,000,000. It includes the initial capitalization of Php 83,500,000 which
is composed of the acquisition of land, construction of the building, obtaining licenses
and permits, marketing promotion expenses, the cost for start-up inventory, the cost of
purchasing storage hardware and the cost of store equipment. The 60% of the
remaining cash will be deposited in a bank as a contingency fund, and the other 40%
will be on hand to be used as the revolving fund if the business.
Searching for MC Drivemart possible competitors, the grocery stores that are
present in Batangas City are SM Hypermarket, Citimart, Robinson’s Supermarket
(Nuciti), Budget Lane, Puregold, SDC Coopmart, SM Supermarket, and Tom’s
Supermarket. One of the main competitors of MC Drivemart Grocery is Citimart since
most of the consumers are going there because Citimart offers wholesale and retail
goods to the consumers as well as those people who have small businesses like Sari-
sari stores. Thus, MarkCount DriveMart Grocery aims to provide the consumers the
easiest and the most accessible grocery shopping store in Batangas City since majority
of the consumer exerts time every week. This simply proves that one of the main
activities of Batangueños are shopping.
Company Story
MarkCount DriveMart Grocery has risen from the idea of finding innovated
opportunities in Batangas City. This was invented through writing down ideas out of the
box of limitations by one of the proponents in one of their subject BM 111,
Entrepreneurial Management. It was first an abstract idea that aims only to have a
3
different structure of grocery stores in the market. Out of all the found possible
opportunities of the proponents, Vincent Atup, Joseph Bathan, Elizabeth Brun, Diane
Condez, Ednalyn Cuasay, and Kate De Villa, the unknown proposed grocery store that
offers drive thru was named after combining the two programs of the proponents,
Marketing Management and Accounting Management which resulted to MarkCount
DriveMart Grocery. This solves to the main problem found by the consumers in having a
slow transaction line in cashier sections and giving another option for the consumers
who do not have time to shop grocery items and take orders immediately. As the ideas
of the proponents for MarkCount DriveMart Grocery to be possible, feasibility study was
conducted first before reaching to this point of making business plan as further study
possibly. Thus, hope in MarkCount DriveMart Grocery is burning high for the proponents
to see that this type of firm can become possible in the modern generation and become
a stepping stone for them towards dreaming to be successful entrepreneurs.
The Product
Location
It is found out that the major competitor of the business is Citimart, so it has been
decided to place the location of the grocery store almost near the area of the competitor
but with the assurance that the area will be more accessible to the constumers. The
chosen location will be at 79 Rizal Ave, Poblacion, Batangas City the former Mac Sor
Hotel. With this 2500 sqm lot, the area can accommodate more drive thru customers.
Operation Hours
Store hours will be 7 days a week from 06:00 A.M. until 10:00 P.M. All major credit
cards will be accepted.
Products
4
A product is made of the factors a customer considers in making a purchase. In
MarkCount DriveMart, the product offerings consist of all the grocery items that other
competitors offer. Since the firm is a grocery type of store, the product will be
categorized in many divisions such as sweets, chips, dry goods, laundry, etc. Giving the
target market two options in giving a better service which are walk-in customers who will
visit the physical store and the innovated drive thru for a more convenient service, this
will help in dictating the demand of the products with regards to the brands the business
is providing. Since MarkCount DriveMart is a drive thru business, its customers are
expecting accuracy, speed, value, and quality services. MarkCount DriveMart will make
all of its processes designed for speed and accuracy. This helps to ensure that there is
no wasted time, movement or effort of customers. MarkCount DriveMart will also
implement training and development to train the staff and management in doing a good
service. Table 1.1 shows the list of the categories of products that is available in
MarkCount. Figure 1.1 and 1.2 shows the front view perspective of the store.
Table 1.1
CATEGORY PRODUCT BRAND
6
Downy
Frozen Products Purefoods
Magnolia
CDO
Pampanga’s Best
Health and Beauty Belo
Celeteque
Neutrogena
Nivea
Maybelline
Johnson and Johnson
P&G Products
Cleaning Supplies Unilever Philippines products
P&G Products
7
Figure 1.2 Front View
Furthermore, the Drive-thru grocery has multiple product line for it is just a
restructuring of a traditional grocery industry, customers could order by a hotline or a
text line, and pick up in person at a scheduled time. The Drive-thru feature is specifically
designed to serve customers through the window/counter while remaining in their cars,
the same way many fast food chains do.
There are three options in placing and receiving orders in Markcount DriveMart;
8
Step 1: The customer will go to Drivemart to shop and get what they need
just like in other typical grocery store.
Step 2: The customer will get the products and pay to the cashier and
they will be accommodated accordingly.
Step 1: There will be designated employees who will accept calls from the
customers.
Step 2: Upon receiving the orders the costumer will be notified for the
availability of the products. As the customer says the order the cashier keys in
the POS the items.
Step 3: The customer will be given a distinct receipt code after the
verification of orders and will be notified for the amount of payment.
Step 1: Search for the item that the customers will buy.
Step 2: Once they found the item they tap the “Add to cart” sign.
Step 3: Once their orders were finalized, they should click the shopping
cart icon to view the items.
Step 4: Once their order is confirmed, the customer must click the “Check
out” button. Once the order is received by the DriveMart, the bagger will prepare
the product.
For the following perishable items such as fruits, vegetables, fish, meats, and the
like, these will be packed 30 minutes before the agreed pick up time. The fastest
transaction process time for a minimum purchase of 500 Php will be 20 minutes this
9
includes the picking and packing.
Step 1: As the customer pays to the cashier, the bagger will prepare their
products by putting it on a shopping bag.
Step 1: The employee who accepted the call will notify the customer thru
phone call once the orders were packed.
Step 2: The receipt code will be presented to the cashier before paying.
Step 3: After paying, the customer will receive their receipt and turn to the
back of the store reaching the end part where the baggage counter is located.
Step 4: The customer will present the receipt to the attendant waiting at a
small window beside the baggage counter, after validating the receipt, the
customer can already pick up their orders to the bagger.
Option C: Mobile App
Figures below shows the layout of the store starting from the interior layout (Figure 2.1),
entrance (Figure 2.2), Window/counter (Figure 2.3), Baggage Counter (Figure 2.4) Exit
Part (Figure 2.5).
11
Figure 2.2 Entrance
12
Figure 2.4 Baggage Counter
Inventory Management
MarkCount DriveMart will be using the First in, First out (FIFO) method in its
inventory system. This simply means that the first merchandise purchased (the oldest or
earliest) are the first merchandise to be sold.
A periodic physical inventory will be done at the same time. Since the business
anticipates that differences might occur between quantity of a material on hand and the
quantity shown on the provided merchandise ledger card. The merchandise ledger
cards show the actual amount or value of the merchandise. At the end of an accounting
period, which in MarkCount's case is a year, all sales operation is halted and the
13
employees count and talky the materials on hand. The operation is resumed after the
inventory is counted and verified. MarkCount will be using a less disrupted procedure
which is the continuous or cycle inventory method. Under this method, only few
materials are counted each day. A schedule is made so that all materials will be
inventoried at least once a year. If detected that an inventory shortage or overage have
occurred, adjustment must be immediately made to reconcile amounts. A computer
system will be used to speed up and simplify the process of taking inventory.
Reorder point is used to determine whether an item has reached a level at which it
should be reordered. MarkCount's reorder point will be computed as follows:
Economic order quantity, on the other hand determines the standard quantity to be
ordered. It should reflect the quantity necessary to get the best price while keeping
inventory at an appropriate level to ensure uninterrupted production.
EOQ= √(2 x Annual requirements x cost of an order)/ carrying cost of a single item
To determine the number of order the business will make, the annual requirements
must be divided by the EOQ or the order size.
Market Opportunity
14
According to the Business Permits and Licensing Office of Batangas City, there
are 195 registered grocery stores in Batangas City in 2015 and there are newly opened
grocery stores as the years passes by. According to the census, the projected
population for Batangas City, Ibaan, San Jose, and Mabini are estimated to be 361750,
48482, 68517 and 44391 respectively. Majority of the grocery stores operates in 12
hours. Based on the research, the grocery stores that are present in Batangas City are
SM Hypermarket, Citimart, Robinson’s Supermarket (Nuciti), Budget Lane, Puregold,
SDC Coopmart, SM Supermarket, and Tom’s Supermarket. One of the main
competitors of the grocery store is Citimart since most of the consumers are going there
because Citimart offers wholesale and retail goods to the consumers as well as those
people who have small businesses like sari sari stores. According to Survey, 50% of the
consumers go to the grocery stores once a week, 15% twice a week, 30.8% once a
month, 4.2% everyday, showing that the demand for the grocery stores are high at
present. On the other hand, MarkCount is the pioneer in providing a convenience to its
customers with its drive thru feature.
Growth Potential
The proponents have evaluated the future opportunities of the venture that will
help it to become more successful.
15
easier transaction by offering home delivery of grocery items for those who are unable
to go to physical stores. Since hotlines are the first medium used in order processing,
taking advantage of technology and using it for widespread scope of business
transaction.
Market Strategies
Marketing strategies of the Mark Count considers the results of the survey done
from the feasibility study for the firm. The marketing mix is a crucial tool to help
understand what Mark Count Drivemart can offer and how it plans for a successful
product offering. The marketing mix is most commonly executed through the 4 P’s of
marketing: Price, Product, Promotion, and Place.
Product
The product element in the marketing mix is concerned with developing a product
that people are willing to buy. A product must satisfy a customer’s need; otherwise,
people will not want it. Some decisions concerning the product are the size, color,
brand, packaging and brand opinions. A product is made of the factors a customer
considers in making a purchase. In Mark Count Drivemart, the product offerings consist
of all the grocery items that other competitors offer. Since the firm is a grocery type of
store, the product will be categorized in many divisions such as sweets, chips, dry
goods, laundry, etc. Giving the target market two options in giving a better service which
are walk-in customers who will visit the physical store and the innovated drive thru for a
16
more convenient service, this will help in dictating the demand of the products with
regards to the brands the business is providing.
Price
Place of Distribution
Promotion
Markcount DriveMart will promote its products through four main marketing
communications tactics. This element of the marketing mix presents how the firm will
communicate with its target customers. Markcount DriveMart’s planned main promotion
17
tactics are as follows, arranged according to significance in the company:
1. Advertisements
a. Social Media such as Facebook
b. Magazine
c. Brochures, Flyers
2. Sales promotion
a. Gift Certificates for the first 100 walk-in and drive thru customers on it’s
first day
b. Offering 20% Discount on convenience fee for the first 3 months from
1pm-3pm
c. Loyalty Cards
3. Personal selling
a. Customer Service Section
b. Receiving Hotline Inquiries
c. Mobile Application inquiries
4. Public Relations
a. Event Sponsorships
b. Scholarship Program in 2020
c. Opening of Livelihood Programs for Mothers in 2021
To create authentic and lasting brand awareness, Markcount DriveMart will focus
on meaningful content and a strong brand personality through its social channels. Other
marketing activities will happen when sales personnel persuade customers to visit and
buy in the grocery store. Mark Count DriveMart will apply public relations to boost its
corporate and brand image. For example, the company will have sustainability
programs for its supply chain, and will give donations to support programs for children,
education, and health and human services.
Industry Analysis
18
competition of the industry with other emerging industries, future prospects of the
industry taking into account technological changes, and the influence of external factors
on the industry.
Having the idea of planning Mark Count Drivemart Grocery, this will help the
consumer to attain the level of convenience they have always wanted in grocery
shopping. It seeks to provide the needs and wants of the consumers that can be found
both in convenience and grocery stores.
Rivalry Among Competitors. This is one the forces that the firm might be
challenging in the workplace. Batangas City has been surrounded by several grocery
stores which are main competitors of Markcount. Being established prior to Mark Count,
the firms already know what strategies and plans should be implemented to achieve a
continuous progress high profitability. It can be predicted that there is a huge chance of
high competition between its competitors such as SM Hypermarket, Puregold,
Shopwise, Budget Lane, etc. One sure advantage of Mark Count to its competitors is its
innovated service to the consumers which has always been resolved since then, easier
and shorter period of item transactions.
Threat of New Entrants. Mark Count Drivemart Grocery as a new firm in the
market has an opportunity to enter the market easily. Being an innovated and redesign
grocery store in Batangas City, it is an advantage for the firm to have a progressive
establishment. However, the presence of new and old competitors are inevitable
because of high competition in the market. Businesses nowadays are showing and
growing everywhere because of the high demand of consumer’s needs and wants. In
line with this, the firm’s existence are supported enough to handle the economic
situation and legal barriers since a study is being done first before undergoing the
business plans. Other requirements like capital and cost size were also part of the
study.
19
Threat of Substitute Products. In this aspect, this refers to the chance of losing
the customers interest in Mark Count Drivermart once there’s an existing firm that offers
the same products at lower prices. Since Mark Count will have two options, walk-in and
drive thru, customers might shift in another store due to the convenience fee included in
their products purchase. Although all of its competitors are offering the same goods, the
prices vary and affects the buying behavior of customer. Thus, threat of substitute
products for Mark Count is high because of its competitors established before its
existence and the chance of losing the interest in the store due to some pricing issues.
Bargaining Power of Supplier. Supplier power has been pretty high in the past
because grocery stores had very few options of where they could get their goods and
had even less of a say of how much to pay for these goods. Mark Count will be starting
to change the balance of power away from the supplier. By being so large and having
the power of making or breaking a product based solely on Mark Count carries it they
can demand certain prices. Another way to combat high supplier power is to introduce
private label brands. Private-label products or services, also known as "phantom
brands", are typically those manufactured or provided by one company for offer under
another company's brand. Private-label goods and services are available in a wide
range of industries from food to cosmetics to web hosting.
Bargaining Power of Buyer. Buyers have bargaining power when they are
strong enough to be able to put collective pressure on the companies producing a
product or a service. Buyer power in the grocery industry is obviously high. This fact can
be directly associated with the ease of substitution and intense rivalry in the industry.
The strongest power that buyers can exert is to lower prices, which in turn impacts the
profit potential. To aid this possible disadvantage of this, Mark Count will include an
Establish Walk Away Prices, it is establishing a minimum price level that will not be
20
crossed no matter what the buyer demand. This will not allow the buyer to keep making
demands as they will understand that a certain level will not be crossed. Though there is
a danger of losing customers here if the product is generic, but if the buyer wants to
keep the relationship going, an agreement may be reached to the benefit of both
parties.
Management
Company Ownership
The company will be owned and managed by the proponents: Elizabeth Brun,
Joseph Emmanuel Bathan, Kate Ann De Villa, Vincent Jayvee Atup, Diana Abigail
Condez and Ednalyn Cuasay.
The management of Mark Count Drivemart has a proven record of
entrepreneurial success and innovative business strategy with extensive knowledge in
the specialty of business. They are in order of:
President of MC
Elizabeth Brun launched Markcount Drivemart who invest in socially and
environmentally responsible business activities. In this role, Eliza, manages the financial
projection of Mark Count Drivemart for three years. Her other work includes the sales
area, including the mutual funds given by other stockholders.
22
Marketing Director
Vincent Jayvee Atup as one of the owners of Mark Count, works as the head in
marketing department. He will work for all the marketing programs and activities of the
firm. Being a graduate of Marketing Management, he maximizes his skills and
experiences in creating effective marketing projects that will boost up MC in the market.
Since the firm is newly established, he is responsible in increasing the awareness of
Mark Count and give the right branding for the firm itself. Thus, his job is creating the
goodwill of MC in the business industry as well as to the consumers.
23
success of Mark Count.
Moreover, Mark Count Drive Mart believes that this venture will benefit to their
target market specially to the moms. This can help in catering their household needs
more convenient and easily. It will help them to become productive everyday since MC
offers a drive thru service for those who are in rush. MC's target market will be able to
shop in a more convinient and easier way.
To the government, Mark Count can contribute by paying the business taxes
imposed to every firm and serves a licensing permit as one of the local ventures
established.
24
Financial Statement and Projections
Assumptions
Sales
For drive thru customers, the required minimum amount of purchase is 500 Php
It is assumed that 2020 merchandise sales will have an increase of 30%, and
50% on 2021.
25
Convenience fee
Convenience fee will increase in the same way the forecasted merchandise sales
increases.
Cost of Merchandise sold will be computed as, the gross sales divided by 1.VAT
(12%) to get the total cost + mark up and then cost + mark up will be divided by 1.Mark
up (which in our case, the mark up is 50% of cost).
Purchases
Depreciation Expense
The straight line method of depreciation is used. And the accounts with salvage
value are recorded accordingly.
Operating Expenses
On the first year of operations, it is assumed that each line item* in the operating
expenses section will increase by 5% from January - October and by 20% for November
and December.
26
*except for Depreciation Expense (see computation in the notes to financial
statements) and Advertising Expenses which decrease by 5% monthly from January to
October and increase by 20% from November-December.
Investment Opportunity
MarkCount DriveMart is seeking equity investment of P90,000,000.00 in equity
capital to finance the expansion of the store and to open it for franchise.
Financing History
Exit Strategies
The proponents of MarkCount will exit this endeavor after they have created a
flourishing business that could be sold for a substantial profit and/or as a franchise that
could serve rural communities across the country. It is the owners' intention to run this
business until they are ready to retire.
In the event the proposed plan is not successful the owners will implement
27
necessary measures to exit the business endeavor with minimal damage to the owners
and investors just like the usual liquidation process, all equipment and merchandise will
be sold to cover any outstanding debts. Any remaining debt will be paid by the owners
in the form of monthly payments until all debts are paid in full.
The success of the business will be monitored monthly in the first year and
quarterly in subsequent years. The owners are aware that it usually takes new
businesses three years to start turning a profit and that the business could operate at a
loss during that time. The owners will keep in mind evaluating the state of the business,
and make adjustments when possible to keep the business running with a positive cash
flow. If the business exceeds the amount of acceptable losses and is unable to
compensate the owners, the business will begin the process of closing the business and
paying back debt.
Investment Risks
Opening a retail store is not without risk, the proponents will be considering the
following factors and its associated risk.
Product risk. since the flagship of Mark Count is its drive thru feature, the risk of
failure in speed and accuracy is present. Training and supervision will be undergone by
the employees.
Management Risk. The incorporators will also be the major shareholder and the
board of directors, they will be responsible to all business transactions. If either of the
incorporators were unable to continue to play a role in the corporation's progress, the
growth potential of MarkCount might be impaired.
28
Competitive Advantage
The Mark Count Drivemart is fast and convenient so it was easier and more
convenient for people wanting to buy their necessary needs through the drive through.
The fact that this makes everything easier because we have taken things to a whole
new level. Mark Count drivemart offers various products that can be found similarly in
other grocery stores. It depends on the number of suppliers that the firm is connected
that offers at the least cost for the consumers. One thing that makes the firm different
from its competitors is the process of ordering the items for drive thru customers which
only requires an oral communication followed by claiming of the purchased goods in the
next station. Moreover, products especially food products are also classified based on
the categories in grocery stores for an easier way of transaction. There will be a
particular convenience fee for every minimum number of purchases that will be charged
on the consumers’ item transactions.
Different and unique the whole idea of a drive through grocery is completely
different to what is already out there, we believe this is a advantage as people are going
to want to test out the idea. It seeks to provide the needs and wants of the consumers
that can be found both in convenience and grocery stores. It has the primary objective
to recalibrate the type of grocery stores as a business opportunity in the market and to
innovate the existing ones in the society that will benefit the firm itself and the
consumers. It gives opportunity in the economic aspect of the nation such as providing
new concept that will refresh the intellects of every person.
29
Another way to combat high supplier power is to introduce private label brands. Private-
label products or services, also known as "phantom brands", are typically those
manufactured or provided by one company for offer under another company's brand.
Private-label goods and services are available in a wide range of industries from food to
cosmetics to web hosting.
A Parting Thought
The Mark Count Drivemart is an innovated grocery store wherein a drive thru is
an option for consumers who are in a rush for buying their necessities. The environment
for the Mark Count Drivemart is expected to change rapidly, since it will become a trend
for most of the consumers in Batangas City. They have consistently built the foundation
for sustainable growth by expanding our business in outside Batangas City. They would
like to expand Mark Count Drivemart by looking for investors who will help in financing
the business where further growth is expected to continue hereafter. Aiming for further
development of the Mark Count Drivemart, they are willing to take on new challenges.
The proponents believe that including directors and employees strive to work together
as one toward the achievement of this goal with our shareholders.
30