A.

INTRODUCTION AND GENERAL BACKGROUND OF THE PROJECT

House of Potato is a delicacy brand first created and developed in Iligan City,
Philippines. House of Potato offers a good quality of foods using root crops
innovated with a secret formula that gives a unique flavor that Filipino has never
been tasted before. House of Potato is a founded by five business students from
St. Peter’s College in year 2019.
Although House of Potato does not have a large presence in the market, it has
an opportunity to enter in the market which shows potential to increase market
share, profitability, brand awareness, customer acquisition and retention.
House of Potato marketing plan is to emphasize the unique taste when
introducing into the market. We plan to increase awareness and gain new
customers through promotions and advertising in social media, and free
samples. We plan to aggressively achieve our goals through these promotions.
a.1 Name of Business
House of Potato
a.2 Business Address
Mahayahay, Iligan City, Philippines
a.3 Nature of the Business
House of Potato never been tasted before when introducing into the market using
healthy ingredients particularly sweet potato and hotdog. This will create new
taste to health conscious individuals. The product will be sold in bite sizes and
by box.
a.4 Form of Business
Partnership
a.5 Name of Owners
Jamel D. Lindao, Najeeb Hadji Adatu, Abdulnaim Sultan,
Mohammad Shaid Marohomsalic, Jamil Pumbaya
a.6 Objectives
The main objective of House of Potato is to successfully enter the market.
Currently House of Potato is on its introduction stage and does not have a large
presence in the market.
House of Potato has an opportunity to enter in the market which shows potential
to increase market share, profitability, brand awareness, customer acquisition,
and retention to our customers and promote repeat purchases.
B. Marketing Plan
b.1 Description of the Product
The name of our product will be “Sweet Potato Dog”. It looks like an
elongated cylinder with crispiness from the outside portion while tender inside.
Brownish in color due to the nature of sweet potato as well as it has been deep
fried. It contains simple carbohydrates coming from the sweet potato that gives
extra boost throughout the day and it also have protein from hotdogs.
b.2 Business Location

House of Potato will be positioning Mahayahay, Iligan City, Lanao del Norte.
b.3 Market Area
Prospects will be based on psychographic segmentation, teachers,
instructors, students, parents and specially kids from the near schools like ICC,
ICCS, ICNHS and the community in Mahayahay Iligan City.

b.4 Main Customers

The business projects kids and students as the main market, for the
reason that most of the kids and the students are easily attracted to hotdogs and
fried foods. And since the target market doesn’t generate income themselves,
that’s why the product is at its reasonable price.

b.5 Selling Price

The fixed price will be P 30.00 each. Capital, salary expense, and overhead
expenses are already added to come up at a reasonable price.

b.6 Sales Forecast

SALES
WEEK 1 WEEK 2 WEEK 3 WEEK 4
SCHEDULE
Projects
Potential
80 80 80 80
Market
Size/Week
% to be
70% 80% 90% 100%
satisfied
Project Market
56 64 72 80
Size
X no. of
Operating 5 5 5 5
days/week
Projected Sales
280 320 360 400
Volume
X selling price
30 30 30 30
unit
SALES
8400 9600 10800 12000
FORECAST

b.7 Promotional Measures

Since the business is currently in its introduction phase, advertising (TV
ads, Radio) is not yet suitable due to lack of financial stability. But House of
Potato will be penetrating on social media’s, giving out flyers, public relations
using referral program, and personal selling.
b.8 Marketing Strategy
Product Strategy – Simple but attractive, the crispiness will tempt the consumers
Pricing Strategy – Product price is at its reasonable price. House of Potato believes
that less price equals more demand which will result into great profits.
Promotion Strategy – House of Potato will rely mostly on Social Medias and the
power of word of mouth.
Distribution Strategy – House of Potato will be doing personal selling. If there’s
an occasion in school, a stall can also be a good option.
b.8 Marketing Budget
Amount needed for promoting the product will be P5.00 since most of the
promotional measures are achieved through public relations and personal
selling. The budget is for creating a page on Social Media and printing flyers
which is at minimal cost.
C. Production Plan
c.1 Production Process
PREPARATION:
1. In a casserole put some sweet potatoes with water and boil them for about 30
minutes.
2. Then with a fork or knife, check if they are cooked and drain it from water
3. While cooling, cut the hotdogs into 3-4 inches
4. Put the sweet potatoes and cut into half.
5. Marinate the hotdog with egg and flour/bread crumbs then fry.
6. Put the hotdog between the potato.
7. Then, add a pinch of salt, ground black pepper, grated cheese.
8. After that, place it in a paper plate.
c.2 Production Area Lay-out
c.3 Cost of Raw Materials
Description Amount
Sweet Potato P80.00/ 20 pcs
Hotdogs P88/ 20 pcs.
Cheese P39/ 185mL
Bread Crumbs P5/ 10 tbsps.
Flour P5/ 5 cups
Salt P2/ 1 tbsp
Black Pepper (Powder) P15/ 3 tbsps.
Sugar P5/ 1 cup
Oil P25/ 1 packet
Margarine P5/ 2 tbsps.
Egg P18/ 3 pcs.
Mayonnaise P15/ 4 tbsps.
Catsup P25/ 320g
Packaging P15

P342/ 20 pcs.

c.4 Cost of Labor

A. INDIRECT LABOR

General Manager - P5000

Marketing Manager - P4000
Financial Manager - P4000
P13000
B. DIRECT LABOR
2 workers at P9000
TOTAL LABOR COST P9000
c.5 Factory Overhead Expenses
 LPG – P720.00
c.6 Production Cost Per Unit

P17.1 P342
20 pcs.
D. Organization & Management Plan
d.1 Organizational Structure/Chart

General Manager

Jamel Lindao

Marketing Manager Financial Manager

Najeeb Hadji Adatu Abdulnaim Sultan

Worker Worker
Mohammad Jamil Pumbaya
Shaid
Marohomsalic

General Manager – He is responsible for the overall supervision, this includes

marketing, production and financial management of the business.
Marketing Manager – He is the one who is tasked for the promotional
measurements of the products. He is also responsible in further research for
the future development of the business.
Financial Manager – He takes correct calculations of the production costs and
to identify if there’s a loss or a profit.
Workers – They are the man-power of the business. They are responsible for
producing quality products.

d.2 Pre-Operating Activities – Gantt Chart

d.3 Pre-Operating Expenses

List of Activities Expenses
Research P20.00
Canvassing of Raw Materials P18.00
First Production Trial P22.00
E. Financial Plan

e.1 Total Project Cost (Month)

Particulars Equity Loan Total
Working Capital
Raw Materials P13680.00
Direct Labor P9,000.00
Overhead P13,000.00
Total Working
P35,680.00
Capital
Total Pre-Operating
P240.00
Expenses
GRAND TOTAL P35,920.00

e. 2 Sales Report
Date Units Sold Amount Total
03-01-19 80 P30.00 P2400.00
03-02-19 80 P30.00 P2400.00
03-02-19 80 P30.00 P2400.00

e. 3 Profit & Loss Statement for one (1) month.

SALES: (80 pcs. x 5 days per week x 4 weeks x P30.00) P48,000.00

Less:
Raw Materials: P342.00 x 2 x 5 days x 4 weeks P13,680.00
CONTRIBUTION MARGIN (1600pcs) P34,320.00

Less:
Marketing Expenses (P60 x 4 weeks) P240.00
Labor P9, 000.00
Factory overhead P13, 000.00
NET INCOME P12, 080.00

e.4 Break-even Point

Fixed Costs = BEP (MONTHLY SALES)

Contribution margin per unit

P22, 240.00 = 13.9 units (MONTHLY SALES)

1600 pcs
e.5 RETURN OF INVESTMENT

Monthly Net Profit x100

Total Capital Requirement

P12, 080.00 x100 = P33.63

P 35,920.00
 St. Peter’s College
Sabayle St., Iligan City

House of Potato

Business Plan

By

Jamel D. Lindao

Najeeb Hadji Adatu

Abdulnaim Sultan

Jamel Pumbaya

Mohammad Shaid Marohomsalic

October , 2019