TMC Product Plan

7/19/2019
Cacao Tea

KARL DANTE C. LORZANO

Masters in Management
 PRODUCT LAUNCHING OF TMC CACAO TEA

Background of the organization:

Tawan-tawan Multi-Purpose Cooperative was registered at Cooperative Development

Authority (CDA) last March 27, 1991 with 206 members and a total land area of 220 hectares. In
2011, TMC was engaged in cacao processing and marketing of dry-fermented beans and other
agricultural activities such as banana and coconut trading, durian processing, consumer store and
lending. TMC has been in the cacao industry for thirteen (13) years and one of the supplier of dry-
fermented cacao beans of Chocolate de San Isidro last 2011.

The coop had already started processing tablea, however the coop was not able to maximize
the volume of production due to limited capital and processing equipment such as, roasting and
grinding machine. With the intervention of the PRDP and the support of the cooperative members,
TMC can fully maximize its production and can meet the necessary demand of its market. Given the
availability of raw material in the area, the coop will also serve a supplier commitment/agreement
with the coop members, in order to have additional security of raw materials.

VISION

Ang Tawantawan Multipurpose Cooperative us aka Cooperatiba nga malig-on, malampuson, ug

maalagaron sa tanang panginahanglon sa mga sakop nga madasigon sa pag – apil apil sa tanang
kalihukan alang sa kalambuan sa cooperatiba ug sa kinatibuk-an sa komunidad sa ARC. Tawantawan

MISSION

1. Pag mugna ug makanunanyong programa sa pagtoon pang kooperatiba

2. Pagbutang ug digang capital
3. Paghatag sa tanang serbisyo nga gikinahanglan sa miyembro

GOALS

1. Paghatag ug dugang edukasyon sa tanan miyembro og opisyales

2. Maghimo ug mga pamaagi sa paghatag ug dugang capital
3. Magmugna ug serbisyo sa Consumer, marketing, credit, mortuary, ug uban pa.
4. Makipagtambayayong o mu tie – up sa mga ahensiya sa gobyerno ug NGO
Rationale of the study:

The purpose of this study is to launch a new product for the Tawantawan Multipurpose
Cooperative with cacao as the main ingredient and its introduction in the market. In the present,
Davao City is hailed as the Chocolate Capital of the Philippines thus producing large volumes of cacao
based products and exporting them in other countries, local producers also engages in international
marketing and has been awarded by the international bodies for having good quality cacao products.
In these generation where people are usually consuming food and beverages that are made out of
chocolate such as chocolate candies, cacao nibs, chocolate drink, and many more. As part of the
market innovation, the TMC would soon be introducing its new product, the Cacao Tea targeted to
be launched at the Kakao Konek Convention, an event which will be organized by the country’s
leading cacao value chain organization CIDAMI with the possibility of SMX Convention Center serves
as the Venue for the said event.

Cacao tea is made from cacao husk, which is the shell of the roasted cacao bean - a
byproduct of chocolate making and often a waste product. When the shell / husk are being brewed
in hot water it creates the most insane chocolate infusion, and makes use of the entire cacao bean.
The product is intended to make full use of the cacao beans in its entirety.
Description of the product:

The product will be the Cacao Tea, cacao has been in the market for almost 5 years, but here
in Davao it is not yet properly introduced in the market and having difficulty in finding them at the
supermarkets and can only be found in select specialty stores. The cacao tea will appear like the tea
products we used to see in the market but instead of using cacao tree leaves like the other tea
products, the cacao tea will be manufactured by the use of cacao shell from roasted cacao beans.
When you first open the bag you'll smell a pleasant chocolatey aroma and upon brewing to your
desired strength, the taste is familiarly reminiscent of a hot chocolate but without all the added
sugars. Cacao tea is 100% cocoa-based. It is completely natural, preservative free, and without any
artificial flavors or starches. It will be packed on a tea bag each bag will be sealed individually and put
around 5 pcs in a zip bag with a reasonable price of Php. 60.00.

Cacao tea also have plenty of health benefits:

Cacao is known as one of the most antioxidant-rich foods in the world. Luckily the husk carries many
of the same health properties as the cacao beans themselves.
Antioxidants support the body by protecting it from free radical damage caused by toxins and
inflammation which can benefit the whole body, from skin to digestion, the nervous and
reproductive systems; as well as providing us with anti-ageing benefits.
Cacao is high in magnesium which supports the heart and is important for muscle and nerve
function, as well as other minerals such as potassium, copper and iron. It's found to include a range
of vitamins including Vitamin C and E plus fiber which helps increase digestive enzyme production.
Cacao boosts Serotonin levels and contains feel-good 'bliss chemical' Anandamide, which is a
neurotransmitter that is released in the brain when we are feeling great. It also contains Phenyl
ethylamine (PEA), the 'love molecule' which can raise the level of endorphins and is produced in our
body when we fall in love.

BRAND LOGO
The logo exhibits the Cacao pod with an ethnic pattern in the side to showcase the traditional
pattern that represents the indigenous people in Davao. It also shows the FDA Registration No. and
the address of the cooperative.

PRODUCT
 EXHIBIT A.

TMC CACAO TEA in its packaging

EXHIBIT B.
 TMC CACAO TEA Exhibit B. shows how many tea bags are in 1 pack.

Each Tea bag are individually encased in a see through plastic bag

Target Market:
 The target market for the cacao tea are the young professionals, students, and adults who
are aware of their health and fond of consuming milk teas. According to some milk tea shops and
cafes, their patrons are mostly young adults and students who are fond on drinking milk teas, coffees
with chocolates, and other fruit flavored teas. The tea of their choice are those variants who
incorporates chocolate in their milk teas. If ever adults do come to their shop, they mostly consume
either coffee or tea which has more punch in the aroma compared to other beverages. Those
statements solidify our claim that our target market will be the young professionals, students, and
adults.

As a social media user like the most of us, it is quite noticeable that many of my friends in
the social media are fond of drinking milk teas or teas. Whenever they purchase that beverage, they
usually take a picture of it and post it immediately in the social media with a caption of “I love tea”,
“Tea is Life”, and some are post regarding the new tea shops or cafes in the city.

Market Share:
Marketing Mix:

PRODUCT

100%
pure/natural
cacao made
product

Pasalubong Center
Specialty Stores
Philippine Eagle TARGET
PLACE
Center MARKET PHP 60.00
PRICE
CACAO City
Airport

Press Release
Social Media
Platforms
Trade Fairs

PROMOTION
PRODUCT: Cacao tea is 100% cocoa-based. It is completely natural, preservative free, and without
any artificial flavors or starches.

PRICE: The price will be Php. 60.00 per pack of 5’s which will be justified in its costing (see Costing).

PLACE: The Place will be the Pasalubong Centers, CACAO City, Philippine Eagle Center, F. Bangoy
International Airport, and specialty store like Café Demitasse (see Partnerships).

PROMOTION:

 Trade Fair exposures where the masses come and visit different stalls and booths, each fair
will give opportunity to meet up with other potential buyers.
 Social media platforms may help promote the product, as of today there are more than 1.13
billion users daily of the Facebook, and that’s the only one of the many platforms we can use
for promotion.
 Press release tapping the different media to cover or to promote the launching of the
product at the KAKAO KONEK convention this coming October 2019.
Partnerships:

Name of Partner Product Frequency Mode of buyer / consigner: Arrangement

Delivery or Pick up

CACAO City Cacao Tea Monthly Delivery Consignment

F. Bangoy Cacao Tea 1x every Delivery Consignment
International two weeks
Airport Pasalubong
Center

Pasalubong Center Cacao Tea 1x every Delivery Consignment

two weeks
Phil. Eagle Center Cacao Tea 1x every Delivery Consignment
two weeks

Café Demitasse Cacao Tea Monthly Delivery Consignment

Since the Cooperative’s business is classified as MSME, it would be fitting that they would partner
with the Local Government of Davao in order for them to display at the Pasalubong Center, Cacao
City and other GOCC’s. The requirement needed for the TMC to display is that they are recognize by
the city as a legitimate cooperative with SEC registration no.

The specialty store is the Café Demitasse on which the arrangement will be a consignment basis. The
frequency of the delivery will be monthly.

Process flow:
 Cacao Pods

Breaking

Fermentation

Drying

Roasting

Deshelling

Shell Grinding

Refining

Packing

Breaking – break the cacao pods in order to extract the beans from it

Fermentation – the cacao beans will be fermented in order to make the flavor more intense

Drying – the cacao beans will now be sun dried in this process

Roasting – raw materials are fed to the roasting machine

Deshelling – the cooled roasted cacao beans are deshelled in order to separate the shell from the
cacao nibs

Shell Grinding – cacao shells are to be grind in the desired texture and size

Refining – cacao shells are to be filtered in order to extract the unwanted elements in the final
product

Packing – cacao shells are to be packed in a classic tea bag and each tea bag will be sealed
individually by using a transparent plastic bag and are sealed using a thermal sealer.

Costing:

TABLEYA PROCESSING:
Dried Cacao 120/kg
by batch 10kg

cost 1,200.00

In the deshelling process there will be a spoilage of 8%

which consist of the bean's shell

1,200.00
8%
96.00 Is the spoilage value of the cacao beans

CACAO TEA PROCESSING

800g of shell is valued around 96.00

96.00 800g shells 8.33 /10g

235.00 500pcs heat seal filter tea bags 0.47 each
901.00 100pcs Kraft paper bags 9.01 each

74.00 15pcs 8.5" x 13" sticker paper 4.93 each 0.62 1/8 size of the paper for labeling
1.7
7 printing cost per paper 0.22 1/8 size of the paper for labeling

Cost per 10g of tea bag

8.33 shell

0.47 tea bag

8.80 per bag

Cost per pack ( 5 bags per pack)

5pcs
 8.80 44.00 bag

9.01 1 Kraft paper bag

0.62 1/8 size of the paper for labelling

0.22 1/8 size of the paper for labelling

53.85

Mark up of 11.4%
mark
6.15 up

53.85 cost per pack

60.00 Selling Price

Production may vary considering the volume of the cacao shells recovered from deshelling or the
batches of tableya being produced. In the costing 800g of cacao shell may produce 80pcs of cacao
tea which is per tea bag and 80pcs can produce 16 packs of Cacao Tea.

Organizational Structure:
 GENERAL ASSEMBLY

Audit / Inventory
Election Committee BOARD OF DIRECTORS
Committee

Secretary Treasurer

Education General Credit

Committee Manager Committee

Cashier

Bookkeeper

Clerk

Consumer Store Durian Processing Cacao Processing

Staff Staff Staff

Launching plan:
 Reference & Planning Status

Confirm Launch Date Complete

Complete
Schedule production meeting
In progress
Negotiate with the organizers
not started
Meeting with the production staff
Press release
Create press plan not started

not started
Press outreach for launch
Launching Preparation
Product Preparation In progress
Printing of flyers not started
Preparation meeting not started

PRODUCT LAUNCH OCTOBER 2019

 MONTH
Reference and planning Status
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Confirm Launch Date Complete
Schedule production
Complete
meeting
Negotiate with the In
organizers Progress
Meeting with the not
production staff started
not
Create press plan started
not
Press outreach for launch started
In
Product Preparation
Progress
not
Printing of flyers
started
not
Preparation meeting
started
PRODUCT LAUNCH